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

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.