Having soared ridiculously (25% off Tuesday lows) following its dip after the Italy referendum 'no' vote, ailing Italian lender Monte dei Paschi di Siena has seen its stocks and bonds eviscerated in today's trading as reality dawns that the fecal matter in Italy is about to strike the rotating object. ECB's rejection of Paschi's request for more time has sparked wholesale selling across the Italian banking system.
BMPS shares are now down for the week -after being up over 15% following the Italy vote...
And BMPS sub bonds have collapsed, proving once again that this market is clueless... after bouncing on Draghi's dovishly hawkish taper/extension.
The sub bonds involved in the debt-for-equity swap have colapsed 1000-1500bps on local platforms.
Perhaps Draghi's omniptence is questionable after all?