Posted Aug 8, 2014 by Martin Armstrong
Most people do not know but banking in the rise from the Dark Ages began with merchants and the banking capitol of Europe was Siena, Italy. This is where the oldest bank in the world resides and it is here where we see the consequences of the CDOs marketed by Goldman Sachs and others have dealt a serious blow that still has prevented recovery. Anyone who thinks for a second that the European banking crisis is over or is being exaggerated, well hello – you are obviously caught up in a world of fiction you prefer to believe in.
Rescued with public funds, the Banca Monte dei Paschi di Siena is now reporting an unexpectedly higher loss than initially estimated. This reaches the next wave of a European banking crisis after Portugal and France and Italy. This bank was overseen by the former head of the Italian central bank, later to Goldman Sachs banker Mario Draghi, and then bailed out with 4.1 billion euros from the taxpayers as the former Goldman Sachs banker and former Prime Minister of Italy, Mario Monti assisted.
The Banca Monte dei Paschi has reported a net loss in the months of April, May and June of 178.9 million euros, when analysts had on average expected a loss of 57.5 million euros. Reuters survey of analysts predicted 150 million euro loss ranging up to 15 million euro profit. The bank has reported its ninth consecutive quarter in the red.