European Banks Soar As Draghi Hints At “Public Backstops”

If ever there was a reason for more European nations to ‘exit’ the sinking ship, Mario Draghi just spewed one. Having sent European bank stocks sliding with earlier calls for reforms, Draghi’s wishful-thinking sent bank stocks soaring (especially Italian banks) after he noted a “public backstop is a measure that would be very useful and should be agreed with the Commission according to the existing rules.” We can only imagine Herr Schauble’s face when he heard this… and what about the Dijsselblom “template”?

Draghi’s wish-list…

• *DRAGHI SEES NEED TO ADDRESS NON-PERFORMING LOANS IN EURO AREA (umm yeah!)
• *DRAGHI: PROBLEM FOR BANKS IS WEAK PROFITABILITY, NOT SOLVENCY (bwuahahah!!! even if that were true, you did it! NIRP!)
• *DRAGHI SAYS PUBLIC NPL BACKSTOP POSSIBLE IN EXCEPTIONAL TIMES (rules change)
• *DRAGHI SAYS NPL PUBLIC BACKSTOP WOULD BE VERY USEFUL (indeed)

And Italian bank stocks loved the wishes…

Source: Zero Hedge