Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/12/2014 (4 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 (4 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 July 2014
Sports:
That sports may always be occasions of human fraternity and growth.
Lay Missionaries: That the Holy Spirit may support the work of the laity who proclaim the Gospel in the poorest countries.



Comments


More Business & Economics

The buck does stop here: Chinese currency set to close the gap between it and the dollar Watch

Image of A new study from China indicates that the Chinese yuan is likely to become the third most used international currency by 2019.

By Catholic Online (NEWS CONSORTIUM)

China's currency, the renminbi (RMB), is looking to become the third-largest international currency behind the U.S.'s dollar and the euro by 2019 said the Renmin University of China in a report published on July 20. LOS ANGELES, CA (Catholic Online) - Last year, ... continue reading


Financial consultant warns that U.S. is entering third largest stock bubble Watch

Image of A new study by financial consulting firm Smithers & Co. warns that the U.S. is entering another major stock bubble, the third largest in U.S. history.

By Catholic Online (NEWS CONSORTIUM)

A new research report by financial consultant Andrew Smithers, chairman of Smithers & Co., suggests that the U.S. is in the midst of another stock-market bubble, much like the bubbles in 1853, 1906, 1929, 1969 and 1999. LOS ANGELES, CA (Catholic Online) - ... continue reading


WARNING: The most important article you may ever read - We need a moral revolution at the top, before pitchforks appear in the street Watch

Image of In the game of plutocracy you start by owing money to the bank and as it progresses, you owe more.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

An article published in 2011 in Forbes is making the rounds again and people are talking, but despite the dust on the copy, it's a timely conversation. The article by Brendan Coffey reveals that there are four companies that control 147 other companies and those 147 ... continue reading


U.S. to shortly overtake Saudi Arabia, Russia in production of natural oil Watch

Image of In Texas and North Dakota, oil extraction is soaring at shale formations as companies split rocks using high-pressure liquid in a process known as fracking.

By Catholic Online (NEWS CONSORTIUM)

The United States has often found itself at the mercy of unstable nations for the majority of its oil imports. That day may soon be past after American begins the extraction of energy from shale rock, eventually overtaking both Saudi Arabia and Russia in oil ... continue reading


Unemployment among black Americans twice that among whites Watch

Image of The jobless rate among whites last month was 6.6 percent; among blacks, 12.6 percent. The unemployment rate for blacks has averaged about 2.2 times that for whites.

By Catholic Online (NEWS CONSORTIUM)

When African-Americans marched on Washington in 1963, it was under the banner of "Jobs and Freedom." There remains a great inequity with the former; the number of unemployed blacks in America remains twice as much as whites, and has remained that way for ... continue reading


Don't read this if you enjoy shrimp -- and hate slavery Watch

Image of Forced to work on old fishing boats, slaves work 20-hour days, often with drugs to keep them going. They are not paid, having been bought and sold into the industry.

By Catholic Online (NEWS CONSORTIUM)

A shocking investigative report from The Guardian reveal that virtually all shrimp harvested in Thailand is in some way a product of slave labor, and that much of this shrimp ends up in the mainstream food supply chain. If you eat shrimp, it is likely you are consuming ... continue reading


How bad is it? So bad even the capitalists are quoting Marx Watch

Image of IMF managing director Christine Lagarde gave a keynote address where she quoted Karl Marx.

By Catholic Online (NEWS CONSORTIUM)

The elites of the free world may be awakening to the fact that their unfettered pursuit of more is perhaps the single greatest existential threat to their existence. At a recent invitation-only conference in London, several billionaires as well as the head of the IMF ... continue reading


Yes, corporate tax havens cost you too! Watch

Image of It's common and it cheats millions of their due.

By Catholic Online (NEWS CONSORTIUM)

Surprise, surprise, surprise!  The same day Cardinal Maradiaga condemned unethical business practices that do nothing to help those at the bottom of society, a report was released that shows a majority of Fortune 500 companies stash their money offshore to avoid ... continue reading


America is now more appealing to manufacturers than Germany Watch

Image of German manufacturing firms are finding America an increasingly appealing place to open factories, because of the low price of business.

By Catholic Online (NEWS CONSORTIUM)

Many workers in the United States may agonize over growing job losses thanks to low-cost workers in India or China. For many in Germany, the U.S. may take that role thanks to the low cost of energy. LOS ANGELES, CA (Catholic Online) - The U.S. is the new global ... continue reading


Seattle approves $15 minimum wage Watch

Image of Seattle residents gathered to support the measure to increase the city's minimum wage to $15 an hour.

By Catholic Online (NEWS CONSORTIUM)

In a historic move, they city council of Seattle voted unanimously to raise the minimum wage to $15 per hour, which is twice the U.S. required minimum wage. LOS ANGELES, CA (Catholic Online) - The decision will go into effect next year, and through the next three ... 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, Jeremiah 2:1-3, 7-8, 12-13
1 The word of Yahweh came to me, saying,2 ... Read More

Psalm, Psalms 36:6-7, 8-9, 10-11
6 your saving justice is like towering mountains, ... Read More

Gospel, Matthew 13:10-17
10 Then the disciples went up to him and asked, 'Why ... Read More

Saint of the Day

Saint of the Day for July 24th, 2014 Image

St. John Boste
July 24: One of the Forty Martyrs of England and Wales. He was born at ... 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