- The Real Endgame For Italian Banks
by Tyler Durden, www.zerohedge.com
The new head of UniCredit, Italy’s biggest bank, has implored the EU to take a more lenient stance on rescuing the country’s troubled banking sector, as The FT reports Mustier urges Brussels should look to a controversial 2004 French government rescue of Alstom as a model.
Jean-Pierre Mustier, a former senior banker at Paris-based Société Générale, said Alstom — the French engineering group bailed out by a controversial €2.5bn government aid package — was an example where “the state intervened . . . and the company thrived afterwards.”
European authorities have balked at any taxpayer rescue of Italian banks that do not adhere to strict new EU rules that limit Rome’s ability to bail out financial institutions without first forcing losses on private creditors.
The 13% surge in Italian bank stocks this week – the most since 2011…