EC's Hill says Italy responsible for bank rescue plan (3)

(ANSA) - Brussels, December 10 - Jonathan Hill, the European commissioner for financial stability and services, said Thursday that the Italian government should take sole responsibility for its controversial plan to rescue four crisis-hit small banks. "The Italian government led the process and has responsibility for it," Hill said. On Wednesday the Commission denied an assertion by the Bank of Italy that it had denied permission to use the Interbank Safeguard Fund (FIT) to soften the plan. Many small investors who bought bonds in the four banks have lost their money. "The government discussed (the plan) at length with the Commission, in particular with the competition directorate general, which regarded the measures taken as compatible with EU legislation," Hill said.
    The four banks rescued by the government leaving bondholders empty-handed, CariChieti, CariFerrara, Cassa Marche and Banca Etruria, "sold people inadequate products" and that had "personal consequences for some people in Italy", Hill added Thursday. One of the penniless former bondholders committed suicide.