Deals
BlackRock Drops Rescue of Italian Lender
- U.S. fund’s investment committee rejects backing rescue plan
- Divided coalition could be forced to step in as EU vote looms
A Banca Carige SpA logo sits on a bank branch in Rome.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
BlackRock Inc. handed Italy’s populist coalition a new dilemma on the eve of European elections, ditching a possible rescue of Banca Carige SpA in a move that could force the government to step in or see the lender fail.
The fractious coalition of the anti-establishment Five Star Movement and the rightist League is now in a bind: the parties’ leaders have both virulently denounced previous governments for spending taxpayer money to save failing banks.