Intesa Sanpaolo takes over troubled Veneto banks

(ANSA) - Rome, June 26 - The Bank of Italy said on Monday that Intesa Sanpaolo had taken over the 'good' assets of two insolvent lenders, Veneto Banca and Banca Popolare di Vicenza (BPVI), for a symbolic price of one euro.
    The move prevents a disorderly failure of the medium-sized banks and the rescue, which sees the new good banks stripped of their non-performing loans, will require some 5.2 billion euros in public money. Intesa San Paolo said Monday that the deal safeguards jobs and accounts.
    There had been fears that some account-holders would lose money if the two banks were forced into a bail-in. But Intesa San Paolo also stressed that the contract to buy the some of the activities of BPVI and Veneto Banca features a termination clause in the case that there are problems with a government decree for the rescue of the banks. Premier Paolo Gentiloni on Monday defended the government's intervention as "not just legitimate, but also dutiful". He said the move was "certainly not for those responsible for the collapse, but for others - two million clients, the small and medium-sized enterprises, the regional economy".
    Gentiloni also dismissed talk that the government had presented a gift to bankers with its intervention. "A serious government must address the problems that can hit companies and banks," he said. "The opposite would be singular. Those who talk of gifts to the bankers are just making bad propaganda" On Sunday the European Commission said it had approved Italian measures to facilitate the liquidation of BPVI and Veneto Banca. "Italy considers that State aid is necessary to avoid an economic disturbance in the Veneto region as a result of the liquidation of BPVI and Veneto Banca, who are exiting the market after a long period of serious financial difficulties," said Competition Commissioner Margrethe Vestager. "The Commission decision allows Italy to take measures tofacilitate the liquidation of the two banks: Italy will support the sale and integration of some activities and the transfer of employees to Intesa Sanpaolo. "Shareholders and junior creditors have fully contributed, reducing the costs to the Italian State, whilst depositors remain fully protected. "These measures will also remove 18 billion euros in non-performing loans from the Italian banking sector and contribute to its consolidation".
    The Bank of Italy said former Banca Popolare di Vicenza Fabrizio Viola was among the liquidators of the two banks.