From Kris Sayce – Port Phillip Insider (Australia) –
Banca Monte is one of the world’s oldest continually operated banks. It was founded in 1472. That was 20 years before Christopher Columbus sailed from Spain to the New World.
In other words, that’s one heck of an old bank.
Unfortunately, at least in the case of Italian banks, age does not equate to wisdom. The bank expanded heavily in the 2000s, using debt and leverage, and then came a cropper during the financial meltdown from 2008 onwards.
Things haven’t gotten any better since 2008. In May 2007, the stock changed hands at €90.97. Today, it changes hands for €0.19. If you’re the type who likes to know what that means in percentage terms, it’s a 99.79% drop.
But as we say, because of European Union rules, like in Germany, the Italian government can’t provide a bailout to Banca Monte.
That’s why all Italian eyes are on Germany and Deutsche Bank. You can bet your bottom dollar that, if Germany blinks and finds some way to bailout Deutsche Bank, Italy will use the same ruse to save Banca Monte.