Eurozone's South still poses an enormous risk

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Italy’s largest bank, UniCredit, plans to shed thousands of jobs and raise €13bn in the country’s biggest share issue in a bid to shore up its reserves and boost profits by the end of the decade. The bank said 14,000 posts, or 11% of the workforce, would disappear across its businesses in Europe and 1,000 bank branches in Italy would close. About €18bn of bad loans are to be offloaded to two new businesses mainly owned by US fund managers. The bank’s shares rose 13% as investors welcomed the “decisive” move by UniCredit to distance itself from Italy’s ailing banking sector, which is hobbled by a legacy of non-performing loans.

Italian banking crisis: UniCredit to raise €13bn | Business | The Guardian