Italy to wind up two failing banks at potential cost of €17bn

Veneto Banca and Banca Popolare di Vicenza, blighted by bad loans and a mis-selling scandal, will open as usual on Monday, says finance minister

The Italian government is stepping in to wind up two failing lenders and prevent a bank run, at a total cost of up to €17bn (£15bn).

After an emergency cabinet meeting on Sunday, ministers agreed to a decree splitting Veneto Banca and Banca Popolare di Vicenza into ‘good’ and ‘bad’ banks, keeping branches open.

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