We begin with the Eurozone where the troubled Italian bank Monte dei Paschi arranged a last-minute sale of its bad loans just as the ECB stress test results were released.
However, while Monte dei Paschi shares were up, other Italian/Eurozone banks, such as UniCredit, tumbled. In fact, trading in UniCredit was halted for a while due to this sharp selloff.
Why is the Monte dei Paschi rescue not received well by the banking sector investors? Here is a good summary from the WSJ.
As a whole, Italian banks were down 5% on the day.
Below is a comparison of non-performing loans in the banking system for select Eurozone economies.
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