Italy’s banks have been attacked for loaning practically free money obtained from the European Central Bank to homeowners for huge profits.
Rates for mortgages including expenses and other costs rose to 4.26% by the end of 2011, up from 3.18% a year earlier, a rise of more than a percentage point.
And yet Italian banks borrowed Euros 140 million at 1% from the ECB in December.
Paolo Ferrero, leader of Communist Refoundation was horrified.
‘The increase in interest rates is wholly down to the greed of our bankers who in this crisis want to earn even more, swindling the people to pay for their millionaire settlements.
‘They call themselves banks, but they are really usurers.’