Deals
Italy Commits $19 Billion for Veneto Banks in Biggest Rescue
- Government plans to split lenders up into good and bad banks
- Italy No. 2 lender Intesa Sanpaolo to take over good assets
Italy Commits up to $19B for Vento Banks
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Italy orchestrated its biggest bank rescue on record, committing as much as 17 billion euros ($19 billion) to clean up two failed banks in one of its wealthiest regions, a deal that raises questions about the consistency of Europe’s bank regulations.
The intervention at Banca Popolare di Vicenza SpA and Veneto Banca SpA includes state support for Intesa Sanpaolo SpA to acquire their good assets for a token amount, Finance Minister Pier Carlo Padoan said Sunday after an emergency cabinet meeting in Rome. Milan-based Intesa can initially tap about 5.2 billion euros to take on some assets without hurting capital ratios, Padoan said. The European Commission approved the plan.