Italian Banks Lead Increase in Financial Credit Risk in Europe
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Italian banks led an increase in the cost of insuring European bonds amid concern the European debt crisis may spread just as lenders face scrutiny from regulators over capital levels.
Credit-default swaps on the senior debt of Unione di Banche Italiane SCPA jumped 48 basis points to 283, according to CMA. Banca Popolare di Milano Scrl climbed 37 basis points to 295 and UniCredit SpA, whose stock was briefly suspended after breaching limits on intraday swings, rose 21 to 234.