CARIGE: the ongoing mystery of the Caribond (ISIN: MT0000981200)

A bond is blocked by February 2019 in the Borza Malta Stock Exchange

The bond is linked to the Italian CARIGE Bank affair 

CARIGE Bank in Genoa, Italy

(Rome, October 8, 2019) - Pending various court cases against CARIGE Bank and the European Central Bank both in the Italian Court of Genoa and in the European Court of Justice, a 1.2 B Euro bond is blocked from transaction at the Malta Stock Exchange. The case as been reported to the MFSA (Malta Financial Services Authority) for further investigation.

The Court of Genoa

Could the outcome of this case influence the situation of the Italian Bank CARIGE and the whole European banking system, and how ?

We contacted Marco Saba, who originated the bond, for a short interview. "There are two cases" - explains Saba - "the first case is that the Court agrees with me and the creation of money has to be accounted for into the bank books, and in this case one trillion Euro will resurface in the Italian banking system, and our bond will be paid in full. In the second case, if the Court states that bank money - a.k.a. deposits - is not cash and need not to be accounted for in the financial statement, and thus the clients accounts should be segregated from the books, the value of the bond will fall. In this last case the bank money continues to circulate as an 'Unidentified Cashing Object' (UCO - do they really exists ?) and all the banks, not just CARIGE, will find it increasingly difficult to survive."

In fact, by not accounting for the creation of money, and hence the profits from the same creation - as Biagio Bossone from the World Bank also states - the bank's balance sheet appears poorer than the operational reality.  And he continues: "The purpose of the bond was to finance the judicial battle to see the current violation of the IFRS IAS-7 recognized and, at the same time, to let the public know that this serious problem holds continuously the whole banking system under the sword of Damocles of imminent collapse. "

Saba claims that the current lawsuit in the Genoa court - for 25 billion - is deliberately ignored by the press and mainstream media because of the bankers cartel that wants to continue to make the public believe that commercial banks are just pure intermediaries when in reality they create all the money they needs for their operation over the counter.

The topic is relatively new and has found some new life with the admissions by the Bank of England in the famous quarterly bulletin of 2014. One of the many evidences is the last report given to the Malta Financial Services Authority by the same company that holds the blocked bond account. The issue, particularly relevant for the regulation of the banking system, is in progress.

On September 26, 2019, the Genoa Court of Appeal finally suspended the execution of the first instance sentence, which was unfavorable to Mr Saba, and set the hearing for the conclusions on October 14, 2021. The Italian Court order is available here.