What a drama queen
- Need to use ESM for sovereign bonds, aid to banks
- Current yield spreads fuel further EMU imbalances
- Current spreads impede correct single monetary policy
- EU, ECB must make “practical commitment” to markets
- ECB can fill temporary vacuums, not replace politics
- Warns of “dangerous” renationalization of financial systems
- Need for peer review of Bank RWA calculations
- Italy recovery “journey will not be short”
- Italy must “exploit to full” scope for asset sales
- Italy tax burden “incompatible with growth”
- Bank shareholders “need to realize” profit to be lower
- Italy banks must cut labour costs, executive pay
- Italian banks have 100 bln of elligible ECB collateral
- More bank credits may become elligible collateral
- Italian banks bought net 70 bln in govt bonds in Q1
- “Signs” credit supply reviving after LTRO liquidity
- Italian businesses need to boost equity
- Short-term bank loans hard to use as ECB collateral
Dow Jones reporting.