Banking sector trembles as UniCredit shares plunge

An upbeat assessment by the chief executive of UniCredit (CRDI.MI) of its heavily discounted 7.5 billion euro ($9.68 billion) rights issue failed to stem a second day of steep losses that unsettled investors in other European banks.

Italy's largest bank by assets has lost more than 30 percent of its market value since setting the terms of a capital increase meant to shore up its ravaged balance sheet.

Its shares were at their lowest since the bank was created from the merger of several Italian lenders in 1998, dragging down the broader European banking index .SX7P.

On Thursday, the stock was suspended five times for excessive losses. It closed down 17.3 percent at 4.48 euros, after losing 14.5 percent the day before.

Read Full Article from Reuters

- Posted: 2012-01-05 12:09:57

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