Italy Explores Bank-Rescue Options With EU on Brexit Losses
- Commission is in touch with Italian government: Dombrovskis
- State aid rules require imposing losses on junior bondholders
Valdis Dombrovskis.
Photographer: Jasper Juinen/BloombergThis article is for subscribers only.
The Italian government, which failed to gain European Union backing for a bad bank just months ago, is sounding out regulators on ways to shore up its banks after their shares were hammered following the U.K.’s vote to secede from the bloc.
Valdis Dombrovskis, a vice president of the European Commission, said on Tuesday that the EU’s executive arm is “closely monitoring the situation with the banking sector in Italy” and is “in close touch with the Italian authorities as regards possible steps.” Various options are under discussion, “so I cannot comment in more detail right now,” he said in an interview in Brussels.