How many Italian banks have now understood investors both Italian and foreign. The boards of directors of banks are appointed by the controlling shareholders, that most banks are banking foundations, whose leaders are elected by local politicians. In other cases, banks are cooperatives (there are also co-insurance), which similarly are controlled by the majority political party in the respective geographical area. Once the bank executives were elected by their reference policy begin to return the favor by donating loans to people close to politicians. These loans are not returned, and of course make up the bad loans mount, that in Italy now exceeds 400 billion euro, more than 20% of national GDP. Banks after decades of misrule who looted their accounts now are in crisis and not to fail must ask for money to ricapitalizing. But now investors have no desire to be fooled and banks are failing to find new plucking chickens! If they can not find a short new money soon some banks will fail and the scandal will affect the government Renzi, already strained by the scandal of the four banks that failed in November 2015, whose leaders were relatives of the Boschi minister.
Therefore the government to avoid a new scandal has drawn up a plan for public intervention to support banks. It is creating a fund for the recapitalization of banks and the management of bad debts, whose shareholders are:
1) public bodies such as cash deposits and loans (a state company whose funds comprise deposits of the Italian Post Office)
2) foundations (public authorities whose leaders are appointed by politicians)
3) pension funds (whose leaders are appointed by the trade unions)
4) banks (in turn controlled by foundations)
5) some insurance cooperatives (whose leaders have political references).
The provision according to rumors will have a size between 3 and 6 billion euro, around 0.5% of the GDP of the country. It will all be done without the need to switch from the Italian parliament since it will not directly intervene to the state but the state-owned companies or foundations or independent companies from the public budget although they are controlled by politicians. All to perpetuate patronage control over banks of Matteo Renzi government.
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