It's not often that you hear Fascist dictator Benito Mussolini and luxury mentioned in the one paragraph. But that’s exactly what we read in a very interesting Bloomberg article over the weekend, which claimed Italian banks are spearheading corporate bailouts, something that Mussolini did after the Great Depression.
The article claims that, “So far, Italy has avoided the high-profile bankruptcies that have plagued European and U.S. companies,” like Christian Lacroix SNC. It also goes on to say that “Only one publicly traded company, IT Holding SpA, owner of the Gianfranco Ferre fashion house, has filed for bankruptcy protection this year, amid the worst recession in six decades. No publicly traded company has gone out of business."
Another interesting point we read is that, “About 130 lenders agreed this month to let as many as a million small and medium-sized companies postpone loan payments for a year, giving them additional liquidity of as much as 40 billion euros.”
So the Italian banks are once again the knights in shining armour for their luxury industry. That is ‘benissimo’ [very good] to hear. They must have found the endless pot of gold at the end of their rainbow.
Article by: Melinda O'Rourke