Moody’s Cuts Outlook On Italy’s Banks To Negative As Bank Failures Loom

Calling Italy’s banks among the 10 weakest globally, Moody’s has cut its outlook on the European nation’s financial institutions to negative, from stable. The outlook shift follows a change in Italy’s sovereign outlook to negative after Italians rejected constitutional reforms in a referendum earlier this month, causing political uncertainty. Also see Steve Eisman On Italian Banks – You Are all Screwed Italy And Banking Systems Is The Mother Of All Global … In Moody’s stress tests, Italians banks – hobbled by high problem loans and a high cost-to-income ratio – performed worse than those in Portugal, Spain and Ireland. “Our…