Italian Banks Are Crashing (Again) After Bad-Loan Writedowns Soar

``Banco Popolare is dragging the rest of the Italian banking system drastically lower today after a "suprise" Q1 loss driven by soaring bad loan writedowns. Banco Popolare is down 14% on the day (25% in a week) to a record low, as Reuters reports the bank was forced to admit the reality of its bad loans by the European Central Bank as a condition for approving a planned merger with Banca Popolare di Milano that will create Italy's third-biggest banking group.''