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Description: There’s a simple explanation for why the world’s zombie banks remain so reluctant to write off worthless assets and tap the equity markets for fresh capital. They don’t want to end up like UniCredit SpA. (UCG)

Source:  Bloomberg.com

Date: 01/11/2012

Link:  http://www.bloomberg.com/news/2012-01-12/financial-frankness-is-a-bad-dream-for-a-bank-commentary-by-jonathan-weil.html

Questions for discussion:

  • What is the explanation for not writing off bad loans, according to this report?
  • What could be the consequences of maintaining the status quo?

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