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Another lender threatens Italy banking sector

Monday, July 03, 2017 - 01:03

Genoa-based Banca Carige has been thrust into the spotlight as Italy's remaining large problem bank after Rome's decision to wind down two ailing regional lenders and its planned bailout of Monte dei Paschi di Siena. Laura Frykberg reports.

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Another ailing bank in Italy. The ECB warning that Banca Carige needs help, and fast. Including a boost to its capital, and the shedding of bad loans. It's yet another case for Italy's government, already treating many in the sick banking sector. It's paying Intesa Sanpaolo to take on two regional troubled lenders, Banca Popolare di Vicenza and Veneto Banca. SOUNDBITE (English) CITY INDEX MARKET ANALYST, KEN ODELUGA, SAYING: "It looks like it now you know both from the Bank of Italy and probably the European Central Bank have decided on a formula and we've started to see sort of like the outcomes of that maybe there will be more of these situations going forward." And it's planning a multibillion dollar bailout for its oldest bank, Monte dei Paschi. And that could cause controversy.. It's largely Italian taxpayers who would foot that bill. To the tune of more than 6 billion euros.

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Another lender threatens Italy banking sector

Monday, July 03, 2017 - 01:03