Italian Banks May Need $8.2 Billion as Bonds Slump
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Italy’s five biggest banks, including Intesa Sanpaolo SpA, may need to raise a combined 6.1 billion euros ($8.2 billion) of additional capital as the Italian government bonds they own deteriorate in value.
Two-year Italian debt, which the banks valued at 97 cents on the euro or better on Sept. 30, trades at about 92.7 cents. That suggests Intesa, UniCredit SpA, Unione di Banche Italiane SCPA, Banco Popolare and Monte Dei Paschi di Siena SpA need more capital, today’s Bloomberg Risk newsletter reports. Spokespeople at all five banks declined to comment on their capital needs.