As a great fan of irony, I could not help myself from getting a grin out of 2 competing Bloomberg news items this morning.
#1) Italian Banks Plunge on Debt Concern
- Italian banks slumped in Milan trading amid concern the European debt crisis may spread just as lenders face scrutiny from regulators over capital levels. UniCredit SpA (UCG), Italy’s biggest bank, and Intesa Sanpaolo SpA (ISP), the second-largest, led lenders lower, tumbling as much as 8.9 percent and 7.2 percent respectively.
- Moody’s Investors Service said yesterday it may downgrade 13 Italian banks because they are vulnerable to a cut in the government’s credit rating.
- Prime Minister Silvio Berlusconi said today the country’s banks are “well capitalized.” 8
(*well if there is one bank analyst I trust, it's Silvio Berlusconi!)
#2) Italy's Mario Draghi Wins Top ECB Post
- The European Council on Friday appointed Italian Bank Governor Mario Draghi as the next president of the European Central Bank. Draghi will replace the current ECB president, Jean-Claude Trichet, when his term expires on Oct. 31, according to the European Council. Draghi will serve as president until Oct. 31, 2019.
It appears, much like in the U.S., good stewardship of your own banking system as a chief central banker, has little impact on your potential for either keeping your job and/or being promoted.