ML-Implode News - Goldman Sachs Just Launched Project Fear in Italy

It just releasedÂ a 14-page report warning about the potentially dire consequences of a "no" vote in Italy's upcoming referendum on the government's proposed constitutional reforms. The reforms seek, among other things, to streamline Italy's government process by dramatically restricting the powers of the senate, a major source of political gridlock, while also handing more power to the executive.
The polls in Italy are currently neck and neck, though the momentum belongs to the reform bill's opponents.

If the Italian public vote against the bill, the response of the markets could be extremely negative, warns Goldman, putting in jeopardy the latest attempt to rescue Italy's third largest and most insolvent bank, Monte dei Paschi di Siena.... The rescue is being led by JP Morgan Chase and Italian lender Mediobanca, and includes the participation of a select group of global megabanks... include Goldman Sachs... In the event of a "no" vote, MPS' planned â‚¬5 billion capital increase would have to be put on ice, while investors wait for the political uncertainty to clear before pledging further funds.

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Goldman Sachs Just Launched Project Fear in Italy