Silvio Berlusconi resigned on Saturday to make way for an emergency government Italians hope will save them from financial ruin as thousands of jeering protesters shouted "clown, clown" and toasted the end of a scandal-plagued era.
List of Scandals
• Lodo Mondadori: bribery of judges (statute of limitation acquittal)
• All Iberian 1: 23 billion Lira bribe to Bettino Craxi via an offshore bank account code-named All Iberian (first court sentence: 2 years 4 month jail; appeal: acquitted since the statute of limitations expired before the appeal)
• Lentini affair: false accounting (not guilty because of changes in the false accounting law)
• Propaganda Due (P2) masonic lodge trial: false testimony (guilty but amnesty applied)
• Macherio estates: false accounting (amnesty applied following the 1992 fiscal remission law)
• All Iberian 2: false accounting (acquittal following the new law on the false accounting passed by the Berlusconi government)
• Sme-Ariosto 2: false accounting (acquittal following the new law on the false accounting passed by the Berlusconi government)
• Sme-Ariosto 1: charge for the sale by IRI, bribes to judges (first instance court sentence)
• Bribery of the Guardia di Finanza (first sentence: 2 years 9 months jail; appeal: statute of limitations for 3 charges, acquittal for the fourth (not proven)
• Medusa Cinema company: false accounting (acquitted since too rich for being aware of such small amounts)
• Sme-Ariosto 1: bribes to the judge Renato Squillante
• Macherio estates: embezzlement, tax evasion, another false accounting (the statute of limitations expired before the first court verdict for one charge; and before the appeal court for the second one)
• Television rights: false accounting, tax evasion, embezzlement
• Fininvest financial statement: false accounting and embezzlement (archived thanks to the new law on the false accounting passed by the Berlusconi government)
• Fininvest consolidated financial statements: false accounting (archived thanks to the new law on the false accounting passed by the Berlusconi government)
• Agreement on the division of publicity between RAI and Fininvest televisions
• Traffic of drug
• Tax bribery on the Pay-tv
• Collusion into the 1992–1993 slaughters
• Mafia collusion, together with Marcello Dell'Utri, money laundering
• Bribe to the lawyer David Mills: corruption to influence a judiciary sentence
• Corruption of senators of the Romano Prodi government camp (procedure transferred from Naples to Rome)
• Paying an underage girl (Karima el-Mahroug) for sex and abuse of office relating to her release from detention
Former European Commissioner Mario Monti is expected to be given the task of trying to form a new administration to face a widening financial crisis which has sent Italy's borrowing costs to unmanageable levels.
More than a thousand demonstrators waving banners mocking Berlusconi flocked to the president's residence at the Quirinale Palace as the motorcade carrying the billionaire media entrepreneur, who has been Italy's longest serving prime minister, entered.
The crowd grew so unruly that Berlusconi was forced to leave (scurry away) secretly via a side entrance and return to his private residence.
Cheers broke out when they heard that Berlusconi had resigned and the square broke out into a party atmosphere. People sang, danced and some broke open bottles of champagne.
An orchestra near the palace played the Hallelujah chorus from Handel's Messiah. "We are here to rejoice," one said.
Demonstrators chanting "resign, resign, resign" also gathered outside the prime minister's office and parliament, heckling ministers as they walked between the two buildings.
After the resignation, hundreds shouting "Jail, Jail, Jail," moved from the presidential palace to Berlusconi's residence to continue the noisy celebrations below his windows.
With a public debt of more than 120 percent of gross domestic product and more than a decade of anemic economic growth behind it, Italy is at the heart of the euro zone debt crisis and would be too big for the bloc to bail out.
Berlusconi, fighting an array of scandals and facing trials on charges ranging from tax fraud to paying for sex with an under-aged prostitute, had been under pressure to resign for weeks as the market crisis threatened to spin out of control.
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Showing posts with label italy. Show all posts
Showing posts with label italy. Show all posts
Saturday, November 12, 2011
Wednesday, November 9, 2011
Italy's motto "Thank God for Alabama!!!"
Jefferson County, Alabama, commissioners voted 4-1 to file the largest U.S. municipal bankruptcy after reaching an impasse over concessions with holders of $3.14 billion of bonds.
JPMorgan Chase & Co. (JPM), which arranged most of the debt to fund a sewer renovation, will likely take the biggest loss in the process, which begins with a hearing 10 a.m. local time tomorrow.
A provisional agreement with creditors that commissioners approved in September included $1.1 billion in concessions and called for sewer-rate increases of as much as 8.2 percent for the first three years. The county, which encompasses the state’s largest city, Birmingham, couldn’t get signed commitments from creditors, Commission PresidentDavid Carrington said today.
In addition, the 25-member legislative delegation for the county was unable to unite behind bills needed to implement the tentative settlement.
“We’ve reached that last resort,” said Commissioner Joe Knight. “We could continue and keep kicking this can down the road, but I think the people of Jefferson County have had enough.”
Governor Robert Bentley, a Republican, said he was disappointed by the commission’s vote.
JPMorgan Chase & Co. (JPM), which arranged most of the debt to fund a sewer renovation, will likely take the biggest loss in the process, which begins with a hearing 10 a.m. local time tomorrow.
A provisional agreement with creditors that commissioners approved in September included $1.1 billion in concessions and called for sewer-rate increases of as much as 8.2 percent for the first three years. The county, which encompasses the state’s largest city, Birmingham, couldn’t get signed commitments from creditors, Commission PresidentDavid Carrington said today.
In addition, the 25-member legislative delegation for the county was unable to unite behind bills needed to implement the tentative settlement.
“We’ve reached that last resort,” said Commissioner Joe Knight. “We could continue and keep kicking this can down the road, but I think the people of Jefferson County have had enough.”
Governor Robert Bentley, a Republican, said he was disappointed by the commission’s vote.
Tuesday, October 4, 2011
What do the Euro and the Titanic have in Common? (Answer: Large, Lumbering and Blind to Danger)
European countries with debt ratings below the top Aaa level may see reductions in their rankings, Moody’s Investors Service said.
“All but the strongest euro-area sovereigns are likely to face sustained negative pressure on their ratings,” Moody’s said in a statement. “Consequently, Moody’s expects fewer countries below Aaa to retain high ratings.” It added that “there are no immediate pressures that could cause downgrades for Aaa-rated countries.”
The statement came after the company yesterday cut Italy’s rating for the first time since 1993 on concern the government will struggle to reduce the region’s second-largest debt amid chronically weak growth. Italy was cut three levels to A2 from Aa2. Standard & Poor’s downgraded Italy on Sept. 20 for the first time in five years.
European stocks dropped for a third day, the longest losing streak in four weeks, as policy makers signaled they may renegotiate terms of Greece’s bailout, deepening concern about the impact of the debt crisis. The benchmark Stoxx Europe 600 Index fell 2.8 percent to 217.46 at the 4:30 p.m. close in London, the lowest level in a week.
European finance chiefs meeting this week considered “technical revisions” to the second Greek bailout, Luxembourg Prime Minister Jean-Claude Juncker said yesterday, fueling concern bondholders may have to take bigger losses on the nation’s debt.
“All but the strongest euro-area sovereigns are likely to face sustained negative pressure on their ratings,” Moody’s said in a statement. “Consequently, Moody’s expects fewer countries below Aaa to retain high ratings.” It added that “there are no immediate pressures that could cause downgrades for Aaa-rated countries.”
The statement came after the company yesterday cut Italy’s rating for the first time since 1993 on concern the government will struggle to reduce the region’s second-largest debt amid chronically weak growth. Italy was cut three levels to A2 from Aa2. Standard & Poor’s downgraded Italy on Sept. 20 for the first time in five years.
European stocks dropped for a third day, the longest losing streak in four weeks, as policy makers signaled they may renegotiate terms of Greece’s bailout, deepening concern about the impact of the debt crisis. The benchmark Stoxx Europe 600 Index fell 2.8 percent to 217.46 at the 4:30 p.m. close in London, the lowest level in a week.
European finance chiefs meeting this week considered “technical revisions” to the second Greek bailout, Luxembourg Prime Minister Jean-Claude Juncker said yesterday, fueling concern bondholders may have to take bigger losses on the nation’s debt.
Saturday, September 24, 2011
Sell Europe to Greenland?
Europe is working on ways to boost the firepower of its bailout fund, a top European official said as the United States, China and other countries turned up pressure on the euro zone to contain its debt crisis.
Signs are growing that Europe is readying new measures to prevent fallout from Greece's near-bankruptcy from spreading to other euro zone countries, threatening the region's banks and hurting the world economy.
The European official said on Saturday the euro zone countries cannot boost the size of the 440 billion-euro fund, known as the EFSF, because Germany would not agree to such an increase.
"We need to find a mechanism where we can turn one euro in the EFSF into five, but there is no decision on how we could do that yet" the official said, speaking on condition of anonymity.
Signs are growing that Europe is readying new measures to prevent fallout from Greece's near-bankruptcy from spreading to other euro zone countries, threatening the region's banks and hurting the world economy.
The European official said on Saturday the euro zone countries cannot boost the size of the 440 billion-euro fund, known as the EFSF, because Germany would not agree to such an increase.
"We need to find a mechanism where we can turn one euro in the EFSF into five, but there is no decision on how we could do that yet" the official said, speaking on condition of anonymity.
Monday, September 12, 2011
Contagion stopped in Europe by China!!!
Asian stocks rose, helping the region’s benchmark index rebound from a one-year low, as oil and copper climbed, while the euro weakened toward a 10-year low against the yen before Italy sells bonds today.
The MSCI Asia Pacific Index added 0.5 percent as of 1:05 p.m. after yesterday falling to the lowest level since Aug. 31, 2010. Standard & Poor’s 500 Index futures advanced 0.4 percent. oil gained 0.8 percent in New York, copper jumped 0.9 percent and gold rose 0.9 percent, Europe’s 17-nation currency slipped 0.2 percent to 105.42 yen. The cost of insuring Asia bonds against default snapped a three-day increase.
Italy will seek to raise as much as 7 billion euros ($9.5 billion) in a bond sale, after a government official said yesterday the nation held talks with China about potential investments in the euro region’s third-largest economy. The chance of a default by Greece in the next five years has soared to 98 percent as Prime Minister George Papandreou fails to reassure investors that his country can survive the euro-region crisis, credit-default swaps showed.
“The idea that the Chinese may step up and buy Italian bonds puts to halt the idea of contagion,” Jim Bianco, Chicago- based president of Bianco Research LLC, said in a Bloomberg Television interview. “The big question is whether they actually follow through and buy Italian bonds.”
The MSCI Asia Pacific Index added 0.5 percent as of 1:05 p.m. after yesterday falling to the lowest level since Aug. 31, 2010. Standard & Poor’s 500 Index futures advanced 0.4 percent. oil gained 0.8 percent in New York, copper jumped 0.9 percent and gold rose 0.9 percent, Europe’s 17-nation currency slipped 0.2 percent to 105.42 yen. The cost of insuring Asia bonds against default snapped a three-day increase.
Italy will seek to raise as much as 7 billion euros ($9.5 billion) in a bond sale, after a government official said yesterday the nation held talks with China about potential investments in the euro region’s third-largest economy. The chance of a default by Greece in the next five years has soared to 98 percent as Prime Minister George Papandreou fails to reassure investors that his country can survive the euro-region crisis, credit-default swaps showed.
“The idea that the Chinese may step up and buy Italian bonds puts to halt the idea of contagion,” Jim Bianco, Chicago- based president of Bianco Research LLC, said in a Bloomberg Television interview. “The big question is whether they actually follow through and buy Italian bonds.”
Saturday, August 6, 2011
Dithering?
Euro-region central bank governors will hold emergency talks today intended to stop Spain and Italy from becoming the next victims of the sovereign-debt crisis and limit fallout from the first U.S. credit-rating cut in history.
The central bank chiefs will convene by conference call at 6 p.m. Paris time, said a euro-area central bank official who declined to be identified because the talks are confidential. A spokesman for the European Central Bank declined to comment. Finance ministry officials of the Group of Seven countries were due to hold a conference call starting at 6 p.m. in New York yesterday to discuss the crisis.
The flurry of talks comes as the U.S. downgrade by Standard & Poor’s threatens to further derail efforts to stop the debt crisis from engulfing the euro-area’s third and fourth-largest economies.
“Europe is in an incredibly dangerous situation,” Nick Kounis, head of macroeconomic research at ABN Amro in Amsterdam, said in an interview by telephone yesterday. “The risk is that the U.S. downgrade is just going to unsettle everyone even more. It’s a unique situation in that we are essentially in the heart of a European sovereign debt crisis, which has reached its meltdown phase.”
The central bank chiefs will convene by conference call at 6 p.m. Paris time, said a euro-area central bank official who declined to be identified because the talks are confidential. A spokesman for the European Central Bank declined to comment. Finance ministry officials of the Group of Seven countries were due to hold a conference call starting at 6 p.m. in New York yesterday to discuss the crisis.
The flurry of talks comes as the U.S. downgrade by Standard & Poor’s threatens to further derail efforts to stop the debt crisis from engulfing the euro-area’s third and fourth-largest economies.
“Europe is in an incredibly dangerous situation,” Nick Kounis, head of macroeconomic research at ABN Amro in Amsterdam, said in an interview by telephone yesterday. “The risk is that the U.S. downgrade is just going to unsettle everyone even more. It’s a unique situation in that we are essentially in the heart of a European sovereign debt crisis, which has reached its meltdown phase.”
Tuesday, July 5, 2011
Fra il dire e il fare c'รจ di mezzo il mare...
What are the implications for the U.S given the weaknesses in Eurozone? Think about the market turbulence over Greece, Ireland and Portugal, and multiply.
All of this means the U.S. needs another round of stress tests. It would be wise for U.S. banks to raise enough capital now to withstand any trans- Atlantic storms, such as say hmmm Italy!
Italy has close to 2 trillion euros in debt outstanding. It’s inconceivable that Germany or the IMF could provide a rescue to protect its creditors. Such a package would have to involve loans and guarantees of at least 500 billion, and possibly 1 trillion, euros to impress the markets. This would be a significant fraction of Germany’s gross domestic product of about 2.5 trillion euros. With a debt-to-GDP ratio of about 80 percent, Germany’s ability to take on new debt is limited. Also let’s not forget east of Berlin issues.
The Netherlands, Finland and Austria, combined with Germany, have a GDP of about 3.5 trillion euros. France adds 2 trillion more, but its debt, already 85 percent of output, is expected to grow over the next several years.
Europe does not have enough fiscal firepower to handle an Italian crisis -- at least in such a way as to protect creditors completely. Why would Germany or other EU countries lend to Italy, particularly when its politicians show no sign of coming to grips with their reality?
Italian banks aren’t likely to fail. Regulators will offer plenty of forbearance, so the banks won’t have to value assets at true market values. But the overhang of sovereign-debt losses and a potential ratings downgrade (after a recent warning on Italy from Moody’s Investor Service) could cause banks to cut back on private-sector lending. This would lower GDP growth and further worsen Italy’s debt-to-GDP projections.
What Italy needs is industry, jobs, real value creation equaling real growth. Debt management without social transformation will only delay an inevitable default.
All of this means the U.S. needs another round of stress tests. It would be wise for U.S. banks to raise enough capital now to withstand any trans- Atlantic storms, such as say hmmm Italy!
Italy has close to 2 trillion euros in debt outstanding. It’s inconceivable that Germany or the IMF could provide a rescue to protect its creditors. Such a package would have to involve loans and guarantees of at least 500 billion, and possibly 1 trillion, euros to impress the markets. This would be a significant fraction of Germany’s gross domestic product of about 2.5 trillion euros. With a debt-to-GDP ratio of about 80 percent, Germany’s ability to take on new debt is limited. Also let’s not forget east of Berlin issues.
The Netherlands, Finland and Austria, combined with Germany, have a GDP of about 3.5 trillion euros. France adds 2 trillion more, but its debt, already 85 percent of output, is expected to grow over the next several years.
Europe does not have enough fiscal firepower to handle an Italian crisis -- at least in such a way as to protect creditors completely. Why would Germany or other EU countries lend to Italy, particularly when its politicians show no sign of coming to grips with their reality?
Italian banks aren’t likely to fail. Regulators will offer plenty of forbearance, so the banks won’t have to value assets at true market values. But the overhang of sovereign-debt losses and a potential ratings downgrade (after a recent warning on Italy from Moody’s Investor Service) could cause banks to cut back on private-sector lending. This would lower GDP growth and further worsen Italy’s debt-to-GDP projections.
What Italy needs is industry, jobs, real value creation equaling real growth. Debt management without social transformation will only delay an inevitable default.
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