Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/12/2014 (1 year ago)

Catholic Online (

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.


By Catholic Online (NEWS CONSORTIUM)

Catholic Online (

3/12/2014 (1 year 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'

Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2015
That human trafficking, the modern form of slavery, may be eradicated.
Evangelization: That with a missionary spirit the Christian communities of Asia may announce the Gospel to those who are still awaiting it.


More Business & Economics

Overworked Wall Street employees experience seizures, are hospitalized, and have died Watch

Image of John Hughes in Thomas' bedroom (Damon Winter).


Wall Street has always been a very demanding place to work and with recent work-related deaths, it seems that Wall Street must find a way to provide work-life balance to its employees.  NEW YORK CITY, NY (Catholic Online) - Thomas Hughes was a 29-year-old ... continue reading

7 ways to bring your family out of debt Watch

Image of


There are a lot of ways the improper handling of finances can jeopardize you and your family. The cost-of-living continues to get higher yet your income doesn't. How can you make ends meet? LOS ANGELES, CA (Catholic Online) - Fear not! You can regain control of your ... continue reading

3 easy ways to save money and pay off debt Watch

Image of


Work and play, earn and spend -It's the way the economy survives, but what about your survival? If you're having trouble saving money, don't have a dedicated savings account or just don't know how to stop spending, you may have a problem. LOS ANGELES, CA (Catholic ... continue reading

Is the stock market in trouble? Historical market turndowns following papal visits Watch

Image of Papal visits versus the stock market were reviewed.


As Pope Francis visits the United States, historical data of visits from his predecessors to the United States were linked to several market downturns in the US. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Pope Francis made his historical visit to the United ... continue reading

Construction of high-speed rail between L.A., Las Vegas approved by U.S., China Watch

Image of Signed before Chinese President Xi Jinping's state visit to the U.S., the project is a milestone in China's efforts to market its high-speed rail technology in advanced economies.

By Catholic Online (NEWS CONSORTIUM)

A joint venture to build a high-speed railway linking Las Vegas and Los Angeles has been agreed upon. The project will be the first Chinese-made bullet-train project in the U.S. LOS ANGELES, CA (Catholic Online) - XpressWest Enterprises LLC, along with a China ... continue reading

PENDING FED DECISION: U.S. may be due for the first rate hike in 10 years Watch

Image of A relative

By Catholic Online (NEWS CONSORTIUM)

The Federal Reserve may have to make a very hard decision shortly. "If the Open Market Committee takes the plunge, it will be the first US rate hike in nearly 10 years," Telegraph columnist Jeremy Warner says. LOS ANGELES, CA (Catholic Online) - It will be the ... continue reading

Bear market looms, Yale University market scholar warns Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

There is widespread concern that U.S. stocks are overvalued, which will lead to a ferocious bear market unseen since the "Dot-com" bubble burst in 2000. According to research by Yale University market scholar and Nobel economics laureate Robert Shiller, while ... continue reading

Job participation rate in U.S. at 38-year low Watch

Image of According to Bureau of Labor Statistics, the nation's civilian non-institutional population - which means that all people 16 years of age or older who were not in the military or an institution -- reached 251,096,000.

By Catholic Online (NEWS CONSORTIUM)

Americans not participating in the labor force jumped by a whopping 261,000 more in August than there was in July. The participation rate in U.S. labor remained at 62.6 percent, a 38-year low, for a third straight month in August. These are "cheerful" ... continue reading

Islamic State attempts to replace the U.S. dollar with gold coins Watch

Image of A five denar piece featuring a picture of seven wheat stalks, representing the

By Kenya Sinclair (NEWS CONSORTIUM)

The Islamic State has announced it will be producing gold currency with the goal of weakening the dollar. LOS ANGELES, CA (Catholic Online) - A video posted Saturday, August 29th by the Islamic State warns that replacing the dollar will be "the second blow to America's ... continue reading

Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.


Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading

All Business & Economics News


Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

Daily Readings

Reading 1, Joel 1:13-15; 2:1-2
13 Priests, put on sackcloth and lament! You ... Read More

Psalm, Psalms 9:2-3, 6, 16, 8-9
6 the enemy is wiped out -- mere ruins for ever -- ... Read More

Gospel, Luke 11:15-26
15 But some of them said, 'It is through Beelzebul, ... Read More

Saint of the Day

Saint of the Day for October 9th, 2015 Image

Sts. Denis, Rusticus, and Eleutherius
October 9: The first mention we have of these three martyrs who died around ... Read More