More Bad News for Israeli Banks
Written by: Aaron Katsman | February 21, 2009
As if the Israeli banking system needed more bad news, UBS came out yesterday with a negative report on the nation’s big banks. According to Globes: “The main event of the day was a report by UBS on Israel’s banks. UBS predicts that the banks will stay in the red through 2009 and 2010, and that they will need an aggregate additional capital injection of NIS 22.5 billion by the end of next year. The report sent the bank shares down. Israel Discount Bank (TASE: DSCT) had the sharpest fall of 4.1%. Bank Leumi (TASE: LUMI) fell 1.8% after also garnering a “Sell” recommendation. Two banks received a “Neutral” recommendation: Bank Hapoalim (TASE: POLI; LSE:80OA), which fell 1%, and Mizrahi Tefahot Bank (TASE:MZTF), which also fell 1%.”
We have spoken here about the potential for a large Israeli bank to fail. If you listen to the UBS report, that potential may turn into a reality.
Share with others:
