Bank of Italy Governor Ignazio Visco
said Thursday that bank failures can have a domino effect on
other lenders. "If a supermarket fails, you shut it down and
another one opens," he said. "If a bank fails it is unlikely
that another one will open, but it is more likely the one next
door will begin having problems". He also slammed comments by
European Union bank resolution authority chief Elke Koening in a
Corriere della Sera interview out last week. "Gorbachev once
said that history punishes the latecomers," Koening told the
Italian daily. "Italy has gone through the first and the second
wave of the crisis without interfering with its banks". Visco
called her remarks "politically very incorrect".
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