How Italy's Banks Could Cause The Next European Financial Crisis

NPR

Published July 7, 2016 at 1:33 PM EDT

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Italy is facing a crisis with its banks that has worsened since last month’s Brexit vote. Shares in the world’s oldest bank, Italy’s Banca Monte Dei Paschi Di Siena, have fallen by 45 percent in recent days, and some fear that the situation could ripple across the continent.

Here & Now‘s Robin Young talks with Time’s Rana Foroohar about the Italian situation.

Guest

Rana Foroohar, assistant managing editor for business and economics at Time. She tweets @RanaForoohar.

The headquarters of the Monte dei Paschi di Siena bank on July 2, 2016 in Siena, in the Italian region of Tuscany. Italy's number-three bank, Banca Monte dei Paschi di Siena, took a hammering on the stock market on July 4 as the European Central Bank told it to slash its large bad-debt burden. (Giuseppe Cacace/AFP/Getty Images)