European Competition
Commissioner Margrethe Vestager said Wednesday that the EU
executive has reached a deal with Rome on compensation for small
investors who lost money in four Italian banks saved last year
following government intervention.
"Yes, we have reached an agreement with the Italian
government," Vestager told reporters when asked about
compensation for the investors, many of whom say they were
deceived by the banks about the risks of buying bonds in them.
A 3.6-billion-euro rescue financed by healthy Italian
banks saved jobs and protected account holders but rendered
worthless shares and bonds in the four lenders - Banca Etruria,
Banca delle Marche, Cassa di Risparmio della Provincia di Chieti
(CariChieti) and Cassa di Risparmio di Ferrara (CariFe). One of
Banca Etruria's former bondholders committed suicide after his
life savings went up in smoke. Rome needed a deal with Brussels
to ensure that the compensation did not break the new European
bail-in rules.
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