FIRST BREXIT, NOW ITALEAVE?
Italy’s banks are in trouble and Britain’s decision to leave the European Union has not helped even a little bit. The Banca Monte Dei Paschi Di Siena has seen its shares crash a shocking 45%, resulting in a temporary ban on short-selling stock. While Italy’s oldest bank is certainly the one deepest in trouble, it is not the only one. Many of the country’s banks have experienced massive stock crashes, some seeing shares plummet by as much as 30%. Furthermore, Brexit has created a wave of uncertainty throughout the global market, an effect felt more profoundly within the European Union. Italy is stuck with an economy that is hardly growing ever since their 2002 adoption of the euro. This situation puts banks in a difficult position, as loanees are often unable to pay back their debts, leaving banks with bad loans worth up to $396 billion.