A European Commission
spokesperson said Monday that the EU executive has reached an
agreement with Italy on compensation for small investors who
lost money in four Italian banks saved last year following
government intervention.
Many of the small investors say they were deceived by the
banks about the risks of buying bonds in them.
"We have agreed on important parameters and now
implementation is in Italy's hands," said the spokesperson for
the Directorate-General (DG) for Competition.
The aim of the Brussels-Rome negotiations was to make it
possible for the Italian authorities to grant fast compensation
without breaking the new European bail-in rules, which mean a
lender's creditors must bear some of the burden when debts are
written off.
Premier Matteo Renzi's government has given Italy's
anti-corruption authority (ANAC) the job of handling the
arbitration cases of investors who lost money in Banca Etruria,
Banca delle Marche, Cassa di Risparmio della Provincia di Chieti
(CariChieti) and Cassa di Risparmio di Ferrara (CariFe).
A 3.6-billion-euro rescue financed by healthy Italian
banks saved jobs and protected account holders but left shares
and bonds in the four lenders worthless.
One of Banca Etruria's former bondholders committed suicide
after his life savings went up in smoke.
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