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(email exchange)

Anyone hearing about issues at Unibank in Italy?

>   On Thu, Oct 2, 2008 at 11:17 AM, Kevin wrote:
>   If you mean Unicredito (UCG IM), yesterday there was talk they were to call an
>   EGM, with a rumor that the CEO Profumo was to resign and talk the bank was
>   suffering from liquidity issues. They subsequently announced some real estate
>   sales improving their tier 1 capital ratio. At the same time Italy suspended
>   short sales. Today I see they are looking to raise euro 2.3bn, through the
>   sales senior bonds, aimed at retail investors.
>   Having been regarded as one of Europes strongest banks, market has been
>   concerned that Profumo has persistently claimed they have no balance sheet
>   problems, despite worsening financial environment.
>   Senior cds is trading at 140bp (5yr), it was 80/90 on sept 25th.
>   Kevin

Thanks, heard they are very big and having issues.

US market action seems to be spreading to the eurozone where it can do a lot more damage than it’s doing here.