Media Brexit Hype Hides Collapse Of Italian Banking Sector

"While the picture is a little more mixed today in Italian banks, as it appears investors are picking winners and losers rather than just broadly dumping it all, Monte Paschi is a standout disaster. Having crashed 45% since Brexit and with CDS implying a 40%-plus probability of default, the major Italian bank also has the worst 'Texas ratio' as stress tests loom... As Saxo's Peter Garnry warns "an implosion of the Italian banking system would cascade into other European banks and the funding market, creating disorderly markets and lower sentiment causing a slowdown in economic growth and also prices." From bad to worse...