Fear Of Italian 'No' Vote Weighs On Banks

London (Nov 28)  Royal Bank of Scotland Group, down 2.7%, Barclays, down 1.9%, Lloyds Banking Group, 1.8%, HSBC Holdings, down 1.3%. UK banks were trading lower over fears a 'No' vote in Sunday’s Italian constitutional referendum could mean the departure of Italian Prime Minister Matteo Renzi, who had proposed resolutions to restructure Italy's banking system. Renzi is staking his political future on a referendum that would change the Italian constitution by weakening the upper house of parliament and strengthening the central government. "Fears are that an Italian dissent and resulting market turmoil would dissuade already gutsy investors from daring to participate in desperately needed recapitalisations within a very troubled EUR4 trillion banking system. If they don't, Brussels may be forced to step in and wind them up whatever the cost to all investors, not just shareholders," commented Mike van Dulken, head of research at Accendo Markets.

Source: AllianceNews