Morning Market Roundup: Mafia Banks Run Italy, Google Strikes Gold in Spain

Here’s what’s important in the financial world this morning:

EU: As addressed earlier on The Blaze, Italy’s Mafia has taken advantage of Italy’s economic crisis and is now the country’s biggest “bank,” according to Reuters. Lending by the criminal group has grown to an annual turnover of €140 million ($178.89 billion) with profits of more than €100 billion. According to the anti-crime group SOS Impresa, the Mafia has €65 billion in liquidity, which makes it Italy’s largest bank.

Germany: The EU’s strongest economy is feeling the effects of the euro zone debt crisis as it 2011 fourth quarter GDP contracted by around 0.25 percent, according to the Statistics Office while preliminary data showed it grew 3.0 percent in 2011. Germany did outperform its peers for most of 2011 thanks to strong domestic demand and exports. Looking ahead to this year, the Bundesbank expects 0.6 percent growth in 2012, lower than the government’s official 1.0 percent forecast, while think tank IMK predicted a mild recession.

(Related: Lagarde, Merkel Meet to Move Forward Greek Debt Restructuring.)

Google: The tech giant will see its greatest enterprise contract ever with Spain’s bank, Banco Bilbao Vizcaya Argentaria SA. The bank has signed on to use Google Apps for its 110,000 worldwide employees. Analysts see the deal as an “important” first step in helping the search engine giant grab more contracts in the financial sector.

Alibaba: Alibaba will take a $3 billion loan to buy back part of the 40 percent stake held by Yahoo!, according to sources, down from $4 billion. The decreased loan may attract more lenders to the deal while Alibaba will use cash reserves to make up for the difference, estimated to be at least $3 billion.

Washington-based private equity firm Carlyle Group said on Tuesday it would list its stock on the Nasdaq under the symbol “CG.” Its nine-month net profit and revenue rose around 60 percent to $918.1 million and $2.01 billion respectively. This profit rise enabled Carlyle’s three founders to receive a combined $413 million last year, mostly in distributions, according to a Securities and Exchange Commission filing.

[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]

Comments (14)

  • thegreatcarnac
    Posted on January 11, 2012 at 6:18pm

    Mafia banks don’t lose money. Graft makes money. Just don’t miss your car payment or Vinnie and the boys will visit you and break a few fingers.

    Report Post »  
  • Cincybearcatfan
    Posted on January 11, 2012 at 2:49pm

    How’d you like to miss a house payment or two with the mafia owning your mortgage? Nikki two times would be paying you a visit to collect what’s due the boss. I don’t think the boss cares about bankruptcy protection when you owe him money. Kapish?

    Report Post »  
  • MUSE_FENDERTAMA
    Posted on January 11, 2012 at 1:02pm

    Dang! I gotta get me an internship for that mafia bank! I already speak some italian and love banking, so why not?

    Report Post » MUSE_FENDERTAMA  
  • LadyLibertykicksASS
    Posted on January 11, 2012 at 11:52am

    First we need to find Elected Officials who have a set of B*lls, and who knows how to read!!!. After all, reading is Fundamental…right.?? Then… those big, brave Elected Officials have to do their Job…”Darn, thought we were sent to DC cause we were soooo cute, and rich, and well educated, unlike you peasants, and most of us are Lawyers…don’t forget that!!“ ” Boy, we sure are lucky, aren’t we, America ?“ ”Why, you’d have to go to some place really exotic…. like Russia, to find moreThugs, Liars, Thieves and Assorted criminal types, and all in one place…hmmmm… This has real promise…… Anybody seen the roll of timing fuse? It was right here…..!

    Report Post »  
  • KidCharlemagne
    Posted on January 11, 2012 at 11:28am

    This is actually OLD news:

    ——————————————————————
    “Drug Money Saved Banks In Global Crisis, Claims UN Advisor

    Drugs and crime chief says $352bn in criminal proceeds was effectively laundered by financial institutions
    Saturday 12 December 2009

    Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, the United Nations’ drugs and crime tsar has told the Observer.

    Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. ”
    http://www.guardian.co.uk/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims

    Report Post »  
  • Krazy_Kreepy_Ketchup
    Posted on January 11, 2012 at 11:02am

    Who is going to be the USA’s biggest bank soon? Mexican drug cartels, with the help of the DEA.
    Today’s story:

    http://publicintelligence.net/dea-agents-helped-launder-millions-in-drug-cartel-money/

    Looks like JP Morgan (the fed – lets face it) is turning a blind eye…

    Report Post » Krazy_Kreepy_Ketchup  
  • krjones
    Posted on January 11, 2012 at 11:01am

    I bet Dr. Paul is behind it all…. It’s a Blaze thing….

    Report Post »  
  • The_Jerk
    Posted on January 11, 2012 at 10:43am

    The Jewish mob is now upset with the Italian mob for moving into their business.

    Report Post »  
  • Thevoice
    Posted on January 11, 2012 at 10:34am

    So now we know why big Ben ..in secret…“Has to” ….Send billions without our knowledge ..To as he said ,,prevent economic chaos ….So can we now put the FED away and use the RICO laws.? I mean what they think were a whole nation of a bunch of dopes.

    Report Post » Thevoice  
  • TXPilot
    Posted on January 11, 2012 at 10:19am

    You have to really want a loan bad in Italy, to put your kneecaps up for collateral.

    Report Post » TXPilot  
  • cloudsofwar
    Posted on January 11, 2012 at 10:19am

    Italy backed by the mafia. germany the saga continues.goggle loves spain.alibaba, where are the 40 thieves?

    Report Post »  
  • ozchambers
    Posted on January 11, 2012 at 10:14am

    Boy, I sure am glad the USA isnt going down THIS path!

    Report Post » ozchambers  
    • Nervous Investor
      Posted on January 11, 2012 at 10:48am

      …. (knowing that you wrote that tongue in cheek, I still have to add) …..

      … yet ….. though the first mile has already been traveled ……

      Report Post »  

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