Italy versus Spain: Two measures for solving the same banking problem

On 24 June 2017, the Italian government announced that it would intervene in two banks, Veneto Banca and Banca Popolare di Vicenza. Both banks were to be wound down with each bank’s good assets being sold to the Intesa Sanpaolo banking group.

Mara Monti compares the affair with the case of Spain’s Banco Popular, which was saved from collapse just a few weeks ealer, but using a notably different approach.

ESO: Background information: State aid: Commission approves aid for market exit of Banca Popolare di Vicenza and Veneto Banca under Italian insolvency law, involving sale of some parts to Intesa Sanpaolo http://www.europeansources.info/record/state-aid-commission-approves-aid-for-market-exit-of-banca-popolare-di-vicenza-and-veneto-banca-under-italian-insolvency-law-involving-sale-of-some-parts-to-intesa-sanpaolo/

European Commission: Press Release, IP/17/1556 (07.06.17): European Commission approves resolution of Banco Popular Español, S.A. http://www.europeansources.info/record/european-commission-approves-resolution-of-banco-popular-espanol-s-a/

Website: The Single Resolution Board https://srb.europa.eu/en

ESO: Background information: Agreement with the Italian authorities on recapitalisation of Monte dei Paschi di Siena (MPS) bank http://www.europeansources.info/record/agreement-with-the-italian-authorities-on-recapitalisation-of-monte-dei-paschi-di-siena-mps-bank/

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