Italy in Disarray as ECB Pledge Keeps Nation From Brink

Italy’s government is on the verge of collapse and two of its most senior executives have lost the confidence of shareholders. Thanks to Mario Draghi’s promises, bond investors see the turmoil as more of a blip than a crisis.

Yields barely budged yesterday even after Prime Minister Enrico Letta spent the weekend fighting Silvio Berlusconi’s efforts to topple his government. Intesa Sanpaolo SpA, Italy’s second biggest bank, replaced its chief executive officer and Telecom Italia SpA CEO Franco Bernabe is preparing to resign.