[ Diretor: Mário Frota [ Coordenador Editorial: José Carlos Fernandes Pereira [ Fundado em 30-11-1999 [ Edição III [ Ano XII

terça-feira, 27 de junho de 2017

Liquidation of Italian banks shows limits of banking resolution rules

Margrethe Vestager, EU Competition Commissioner, approved the state aid package.
[European Commission]
The Banking Recovery and Resolution Directive, the new framework to deal with failing banks in Europe, spread the losses to shareholders, and junior and senior bondholders before public money could be injected.

But on Sunday (25 June), the Commission accepted a cash injection of €4.8 billion and state guarantees of a maximum of €12 billion, to support the acquisition of the two banks by Intesa, an Italian lender.

 Italy coughs up €17bn to deal with two troubled banks


Italy will pay up to €17 billion to break up two insolvent Venetian banks, which have posed a threat to the country’s banking system, the government announced Sunday (25 June).

Despite the massive state aid package, EU officials argued that banking union principles were not breached.

The operation escaped the direct intervention of the Single Resolution Board, as it did not believe the public interest was at stake.

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