Things Could Be Worse But They Could Also Be A Lot Better At Monte Paschi Right Now

All depends on how you look at things.
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One the one hand, thanks to this year's tests no longer being pass/fail, the Italian bank doesn't have a giant, gleaming 'F' next to its name.

“The EBA’s stress test is not a pass or fail exercise,” Andrea Enria, chairman of the EBA, said in a statement releasing the results Friday. “Whilst we recognize the extensive capital raising done so far, this is not a clean bill of health. There remains work to do.”

On the other...

Banca Monte dei Paschi di Siena SpA was the worst performer in European regulators’ stress tests, the only lender to have its capital wiped out in the exam, as the region struggles to contain an Italian banking crisis. Monte Paschi’s common equity tier 1 capital ratio, a measure of its resilience, dropped to a negative 2.2 percent in the adverse economic scenario, according to the results of the test, which put lenders through a simulation of a severe recession over three years.

Monte Paschi Capital Wiped Out in European Bank Stress Test [Bloomberg]


Things Could Be Worse But They Could Also Be Better At SAC Capital Right Now

The good news, if you are Mr. Steve Cohen: you were neither charged nor "mentioned by name" in the criminal complaint against your former employee, Mathew Martoma. The less good news: YOU ARE PORTFOLIO MANAGER A. YOU NEVER WANT TO BE PORTFOLIO MANAGER A!


Italians Decide Maybe They Don’t Need Banks

It's kind of cool that Italy can be a sumptuous cultural paradise and economic wasteland all at once.

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Everything That Hasn’t Gone Wrong For Adorable Italian Bank Still Could

Monte dei Paschi does not literally translate as "Mountain of Debt"... Yet.

Things Could Be A LOT Better At SAC Capital Right Now

Back in October, we detailed a list of things that, if you are the hedge fund manager who goes by the name Steven A. Cohen, you really don't want to hear first thing in the morning. They included: “The fleeces are on back order”; “Your ex-wife is in the lobby”; “There’s a photographer here who said he’s been authorized to shoot you wearing a king’s robe and crown for a set of playing cards”; “You’ve been outmaneuvered for the Toledo Mud Hens. But I hear the Binghamton Mets may be available.” Today we must update that list to include another thing, perhaps THE thing,* that people delivering news to Cohen don't want to relay. Paraphrasing but any variants on: "Mr. Cohen, we've received a Wells notice and by the way, they're considering naming you personally."