Moody's downgrades 13 Italian banks

Ratings agency Moody's Investors Service is downgrading the credit ratings for 13 Italian banks three days after cutting the Italian government's bond rating.

The government's lower rating means Moody's believes it is at greater risk of defaulting on its debts and "indicates a similarly increased risk that the government might be unable to provide financial support to its banks in financial distress."

Moody's dropped seven banks by one notch, the other six by two notches. They all remain investment grade.

The downgraded banks are: UniCredit and UniCredit Leasing; Intesa Sanpaolo; Banca Carafirenze; Banca IMI; Banca Monte Parma; Cassa di Risparmio di Parma e Piacenza; Banca Popolare Friuladria; Banca Carige; Credito Emiliano; GE Capital SpA; Cassa Depositi e Prestiti; and Istituto Servizi Mercato Agricolo Alimentare. Read more >>

Europe's Next Bailout: Italy

Business Insider
While analysts have been making a big deal about the bank bailout in Spain this morning, it is important not to forget about Europe's next-biggest problem: Italy.

Yields on Italian government bonds are shooting through the roof today, as investors wonder how much stronger Italy's banks are than Spain's.  In neither case, it would appear, to they believe that the bailout has divorced financial sector stress from that on the government.

The Italian FTSE MIB has also lost all its earlier gains, now down 0.6 percent today.

Check out Italian 10-year yields, up 23 bps so far today:

Read more >>