Italian Banks Come Under A Firestorm Of Shortsellers

About a week ago, IMF released its evaluation of Italian banks in which they said that the sector carried enough weight to navigate through the financial crisis. The banks have to work on restoring investor confidence but they have sufficient capital in place to anchor themselves. Despite of Italy passing through IMF’s stress tests, there seems to be no loss of vigor in hedge funds picking stocks too short. Hedge funds are taking up the pressure on Italian banks with a flurry of new short positions or increases in existing stakes. Robert Citrone’s Discovery Capital chipped in by disclosing a…