Friday, 26 February 2016

Follow-up on Italian banks

In a letter to Financial Times on 23 February, the Director-General of the Italian Treasury provides some info directly related to my previous post.

Vinzenco la Via writes that:

"Between the beginning of 2015 and the beginning of 2016, the Italian government introduced radical changes in the banking sector (...) The new system will exploit economies of scale, allow better use and allocation of skills, and permit better market access, while improving the management of non-performing loans.

Vinzenco, I love what you write.

My only question is: Why did it take you so long??? Where were you between 2008 and 2015?

I know. You were fighting the deeply entrenched interests in the financial sector which had put personal interests ahead of the common good. And various governments had been unwilling or unable to make a serious push to force the banks in this direction.

Has anybody got the guts to make an analysis of the costs to the society of not acting with far more resolve? I'm just asking..

Now I am curious about what happens in the French banking sector. Not to mention in what remains of the partially reformed savings bank sector in Spain.

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