Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/12/2014 (9 months ago)

Catholic Online (www.catholic.org)

In lieu of staggering losses, bank decided to do it all at once

"I believe the group has turned the page," Italy's largest bank, UniCredit's chief executive, Federico Ghizzoni said. "We could have staggered the losses over several years. We decided to take them all in one year." It wasn't good news for many - Unicredit has reported a record annual loss of $19 billion in U.S. dollars and says that it plans to cut 8,500 jobs.

The company is to create an internal 'bad bank' to manage a further 87 billion Euros of bad and risky loans, which will be reduced to 33 billion Euros in the next five years.

The company is to create an internal "bad bank" to manage a further 87 billion Euros of bad and risky loans, which will be reduced to 33 billion Euros in the next five years.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/12/2014 (9 months ago)

Published in Business & Economics

Keywords: Italy, unicredit, layoffs


LOS ANGELES, CA (Catholic Online) - Unicredit, Italy's biggest by assets, put aside 13.7 billion Euros to cover losses from bad loans in 2013.

Attempting to take stock of its financial position, the bank is taking action before European regulators conduct an industry-wide health-check in the coming months.

Prayer, fasting and almsgiving.

The planned job cuts will see the bank lose about six percent of its workforce by 2018.

UniCredit shares nonetheless rose by almost six percent, after it said it would not need a capital increase. The bank is confident it would get a clean bill of health when the European Central Bank reviews the finances of the eurozone's 128 biggest banks.

Ghizzoni is confident that he did the right thing. "I am serene. We have done more than what will be required."

The bank's huge loss, largely due to troubles in Italy and Eastern Europe, was one of the worst suffered by a European bank since the beginning of the European financial crisis.

The company is to create an internal "bad bank" to manage a further 87 billion Euros of bad and risky loans, which will be reduced to 33 billion Euros in the next five years.

Ghizzoni says he's planning a net profit of two billion Euros in 2014, based on signs of economic recovery in Italy, which accounts for 40 percent of the bank's revenues.

Finance ministers and banking leaders in January said that Europe's banking sector is "improving" but that risks remain.

Former head of the U.K.'s Financial Services Authority Lord Adair Turner said that loans to businesses and in the mortgage sector were still at "very low" levels.

Lord Turner said it was a mistake to assume that "lending would be magically unleashed," he warned. Speaking at the World Economic Forum in Davos, Lord Turner also said that rules governing Europe's banks could need strengthening.

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for December 2014
Christmas, hope for humanity:
That the birth of the Redeemer may bring peace and hope to all people of good will.
Parents: That parents may be true evangelizers, passing on to their children the precious gift of faith.



Comments


More Business & Economics

OPEC's bust is America's boom! Why cheap oil is a friend to America Watch

Image of Falling oil prices have caused a great deal of pain among OPEC countries, but the group won't cut production until three months after oil drops below $40 a barrel.

By Matt Waterson (NEWS CONSORTIUM)

The price of a barrel of oil continues to plunge, bringing with it an economic boon to motorists and headaches and potential layoffs to oil producers in the U.S. and around the world. LOS ANGELES, CA (Catholic Online) - Currently the price of a barrel of oil is ... continue reading


Is OPEC over and done with? Bank of America makes startling predictions Watch

Image of OPEC is

By Catholic Online (NEWS CONSORTIUM)

According to Bank of America, the OPEC oil cartel no longer exists in any meaningful sense. Furthermore, crude prices will drop to $50 a barrel over the coming months. This might mean relief at the pump - but this isn't necessarily a good thing, officials warn. ... continue reading


Sears no longer where America shops: 235 stores to close shortly Watch

Image of Analysts called the move a step in the right direction for the company, which has been tapping into its real estate in creative ways to compensate for downward-spiraling sales.

By Troy Dredge, Catholic Online

Few retailers are as American as Sears, one of its former and most popular taglines being "Where America Shops." That's no longer the case, as Wal-Mart has long seized that throne. It was a heavy heart that Sears announced that 235 under-performing stores would ... continue reading


36-year-low: Labor participation in the U.S. lowest since 1978 Watch

Image of The year 1978 was marked by the non-ironic use of disco music by Americans who blasted it on the radio to shake their groove things.

By Troy Dredge, Catholic Online

The year 1978 was marked by the non-ironic use of disco music by Americans who blasted it on the radio to shake their groove things. Another, far less nostalgic reminder of the year has been offered up by the Bureau of Labor Statistics: The labor force ... continue reading


Reflects very badly on U.S.: China is now world's largest economy Watch

Image of How did this happen? As recently as 2000, we produced nearly three times as much as the Chinese.

By Troy Dredge, Catholic Online

In the great car rental war that was between Hertz and Avis back in the 1960s, Avis took pride in the fact that they were behind Hertz with the saying: "We're Number Two - so we try harder!" It seems like the United States didn't try hard enough, as for the ... continue reading


Falling oil prices have helped the U.S. economy and revitalized the spending power of the American consumer Watch

Image of The continuing decline in the price of crude oil has brought numerous benefits to the American consumer and the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The recent plummet of oil prices have drained hundreds of billions of dollars from oil-rich exporters and oil companies but has injected a critically needed boost to the faltering economies in Europe and parts of Asia, but more directly to the American consumer, ... continue reading


Internet retail giant Amazon switches to a ROBOT workforce of thousands Watch

Image of Before anyone accuses Amazon of laying off human workers in order to facilitate automation, it must be noted that the company is opening more shipping centers and hiring 80,000 seasonal workers.

By Catholic Online (NEWS CONSORTIUM)

Internet retail giant Amazon.com Inc. is handling "Cyber Monday" - the online shopping rush that usually occurs on the Monday following the Thanksgiving weekend - all in stride. Anticipating a new influx of customers, Amazon has upgraded and expanded its ... continue reading


Is Apple about to hit $1 trillion? Not if Google has anything to say about it Watch

Image of While Apple dominates the smartphone market, some suspect that its heavy reliance on products will lead to its downfall to companies who offer more services and software.

By Catholic Online (NEWS CONSORTIUM)

Silicon Valley tech giant Apple may one day be worth more than a trillion. Just for a second think about how massive that is. LOS ANGELES, CA (Catholic Online) - The maker of mac computers, iPods, iPhones and more is already worth more than $670 billion, and has a $260 ... continue reading


Feet on the desk - more and more Americans simply don't want to work anymore Watch

Image of Pew Research says that 39 percent of 16 to 24-year-olds don't want to work, up a substantial amount from 29 percent in 2000.

By Catholic Online (NEWS CONSORTIUM)

Nearly four in 10 Americans, or 92 million, are not in the labor force. Many are unemployed for no fault of their own. Many others have simply stopped looking for work. Why? The reasons are complex. LOS ANGELES, CA (Catholic Online) - The largest group of people ... continue reading


REAL INCOME INEQUITY: 85 richest people now have as much money as poorest 3.5 billion Watch

Image of Billionaire investor Warren Buffett remarked more than three years ago that

By Catholic Online (NEWS CONSORTIUM)

The very rich and the very poor just grew further apart. According to Oxfam, the broadening chasm between wealth and poverty has grown so wide that the 85 richest billionaires on the planet, such as Carlos Slim, Bill Gates and Mark Zuckerberg now have as much ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 7:10-14
10 Yahweh spoke to Ahaz again and said:11 ... Read More

Psalm, Psalms 24:1-2, 3-4, 5-6
1 [Psalm Of David] To Yahweh belong the earth and all ... Read More

Gospel, Luke 1:26-38
26 In the sixth month the angel Gabriel was sent by ... Read More

Saint of the Day

Saint of the Day for December 20th, 2014 Image

St. Dominic of Silos
December 20: Benedictine abbot and defender of the faith. Born in Canas, ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter