So far, all the European reforms regarding the banking and finance sector have been unable to protect the citizens from the ongoing and future banking crises and the risk of new public bailouts. The current rules aimed to build a tighter banking union - by introducing a single system of supervision and the transition to the so-called bail-in resolution regime - destabilised the markets by causing panic and loss of confidence among investors, savers and depositors.
By adopting adequate and stringent financial regulations, we should be able to prevent future crises in the banking sector. In the event of a crisis, Member states must be able to manage directly eventual crisis in order to minimise the damage to the banking system according to their own specific needs, with the aim of protecting the interest of the community. Temporary nationalisation, subject to strict restructuring conditions, has often proved to be a cost-effective solution to the state budgets, unlike the bail-in that destroys economic values by damaging small investors and depositors. Italy should have the right to handle the problem of non-performing loans without having to comply with the dictates of European supervision. In fact, the EU imposes to banks, already in distress, unsustainable capital increases on top of a request to sell off rapidly bad debts to speculative funds, creating enormous risks for the depositors and investors facing a possible bail-in. It is necessary to allow banks to absorb the bad debts through a reasonable amount of time and by the support of the state. At the same time, we should establish a committee of inquiry investigating the possible responsibilities and the causes of a financial crisis. In this way, the community would benefit from the economic recovery rather than a few speculative private funds anxious to buy bad credits at a sale price.
• We want to create a modern Glass-Steagall Act based on the separation of commercial banks focused on traditional credit activities from the large investment banks carrying out speculative financial activities.
• Protecting the commercial banks requires the creation of a solid bank deposits and savings system based on an unlimited guarantee from the central bank, who is acting as the lender of last resort for the banking sector.
• We want to revise radically and dismantle the wicked mechanism of the bail-in with the aim of excluding its application to retail customers and depositors of a Bank. People savings must no longer be treated.
• Banking supervision should focus on the systemic risks associated with speculative financial activities. Nowadays, the latter represents the biggest threat to the financial sector. Moreover, we should improve the process of lending credit to avoid the creation of a credit patronage.
• We call for a strict regulation on speculative finance and capital flows, which includes stringent limits on the use of complex financial instruments and risky operations involving financial derivatives. We call for a trading barrier that limits frequent financial exchanges and for the maximum transparency required to countering money laundering and reducing the numbers of financial crimes. We want strong rules against financial speculation combined with a separation of commercial and investment banks. These necessary reforms can protect us from new crises and bring the financial sector to the service of our real economy and of our society.