Implications of Monte dei Paschi bailout for Irish depositors?

Discussion in 'Deposits' started by Dinarius, Dec 22, 2016.

  1. Dinarius

    Dinarius Frequent Poster

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    I'm surprised the level of the coverage of this story.

    This could be the story of 2017. It could make Greece look like a side-show.

    Factor in a possible Le Pen election in France and the re-introduction of the franc and we could have banking mayhem.

    Serious question: where is the safest place to deposit cash now? Irish bank? The likes of RABO?

    Thanks.

    D.

    Ps. I hope this is the right forum.
     
  2. breakonthru123

    breakonthru123 Registered User

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  3. Dinarius

    Dinarius Frequent Poster

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    Thanks for that - a lot for my little head to take it. :D

    I was thinking that just before Christmas is a good time for really bad news that might effect us all eventually (the Italian bank rescue). But, I guess if it's going to play out, it will do so in New Year anyway, and we might all take more notice of it then.

    I'm wondering if the proverbial were to hit the fan, would say Bank of Ireland be a safer bet than RABO?

    Foss's recommendation of cash is just not practical for most people, me included.

    Thanks again.

    D.
     
  4. Markel

    Markel Registered User

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    13
    Not being a little too rash there? The political hot potato in Italy is lots of people hold bonds rather than deposits and the new bailout regime would mean haircuts for those bondholders. Up to now the bondholders (like their moneymarket peers in the USA in the GFC) viewed the bonds as equivalent to deposits. They aren't. There are no issues for insured depositors.

    The "German" euro notes is tin foil hat stuff....
     
    Ravima likes this.
  5. Dinarius

    Dinarius Frequent Poster

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    379
    Italy is Europe's third largest economy and its second largest industrial producer.

    But, due to Monte dei Paschi et al, Italian government debt now stands over €2 trillion - 132% of GDP.

    Sustainable?

    Maybe I am being a little rash - we shall see.

    D.