01-14-2012 05:49 AM CET - Business, Economy, Finances, Banking & Insurance

European Bank on the Brink of Collapse, Crisis Worsens, According To Profit Confidential

Press release from: Profit Confidential
eurozone, debt crisis,US banks,US economy,profit confidential,michael lombardi
eurozone, debt crisis,US banks,US economy,profit confidential,michael lombardi
popular financial newsletter Profit Confidential, the debt crisis in the eurozone has become a banking crisis. UniCredit now needs to raise capital through the issuance of stock. The bank said it would sell stock at massive 40% discount below the stock’s trading price of January 3, 2012.

“There is no confidence in the eurozone banking sector,” According To Michael Lombardi, lead contributor to Profit Confidential.

Only a year ago, UniCredit’s stock sold at $20.25. It’s currently trading at just over $4.00, a worse one-year performance than Bank of America’s stock.

“How would you feel this morning if you had your savings in UniCredit Bank? I know I wouldn’t feel good. I’d probably take the money out and move it to a stronger eurozone bank,” According To Lombardi.

Italy does not have the money to bail out UniCredit. If it fails, Lombardi believes the rumors of UniCredit being bought by another large eurozone bank are unlikely. “The majority of other eurozone banks have their own problems; they don’t need more issues,” According To Lombardi.

Profit Confidential, UniCredit has roots dating back 500 years, operates in 22 European countries, has 9,500 branches, and employs 160,000 people. Comparatively, Bank of America has less than 6,000 branches worldwide. With total assets of about $1.3 trillion, UniCredit is the 14th largest bank in Europe.

“Remember back to 2008; Bear Sterns didn’t fail because it lacked capital. Bear Sterns failed because of a lack of investor confidence in the institution. This is what will happen to the big eurozone banks,” According To Lombardi.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter.

Profit Confidential
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