Italy May Spur Pan-Europe Bank Crisis, SocGen Chairman Says
- Rules on state aid to banks should be reviewed: Bini Smaghi
- Says governments need to accept idea of taxpayer as backstop
Bini Smaghi: People Starting to Withdraw from the Market
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Italy’s banking crisis could spread to the rest of Europe, and rules limiting state aid to lenders should be reconsidered to prevent greater upheaval, Societe Generale SA Chairman Lorenzo Bini Smaghi said.
“The whole banking market is under pressure,” the former European Central Bank executive board member said in an interview with Bloomberg Television on Wednesday. “We adopted rules on public money; these rules must be assessed in a market that has a potential crisis to decide whether some suspension needs to be applied.”