A new private fund to aid
struggling Italian banks will help avert the risk of bail-ins
and keep the national banking system stable, according to a
draft document describing the Atlante fund on Tuesday.
The draft document said a rash of bail-ins would wreak
"significant repercussions on the Italian economic and financial
system, impacting severely on the banking system".
"In light of this situation we believe the Atlante
project... will allow the banking system to make a substantial
value recovery, with significant benefits for the economic
outlook of the country as a whole," the draft said.
The financial industry on Monday approved a
government-backed plan to set up the privately financed fund to
buy up shares in struggling Italian lenders such as BP Vicenza
and Veneto Banca.
Bank shares tumbled in Tuesday trading on rumors Intesa
and UniCredit would contribute one billion euros each to
Atlante. Their shares were down 6% as Banco Popolare and UBI
were suspended on excessive volatility.
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