Brexit Blowback Hits Italian and Spanish Banks

``Clearly, many of the banks in the Eurozone's third and fourth biggest economies are going to need some serious palliative care in the coming weeks and months. As WOLF STREET warned last week, in the event of a Brexit, the ECB is unlikely to let such an opportune crisis go to waste. It will almost certainly use the resulting chaos as cover for stealth bailouts of Italian and Spanish banks, which together are already gobbling up more than half of the funds the ECB provides in its regular refinancing operations. As Bloomberg reported today, they are also by far the biggest participants in the European Central Bank's latest new loan program, TLTRO II...''