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Italy-EU Bank Rescue Talks Said Stuck Over Burden Sharing

  • Government seeking to use precautionary recapitalizations
  • Italy could inject as much as 5 billion euros in Monte Paschi
Bloomberg business news

Sharing the Burdon of Italy's Troubled Banks. Who Pays?

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Talks between Italy and the European Commission to recapitalize Banca Monte dei Paschi di Siena SpA and other banks are stuck on whether creditors should face losses if taxpayer funds are used, according to people familiar with the discussions.

Italy favors a precautionary recapitalization under the European Union’s bank-resolution rules, which allow governments to bolster lenders when capital gaps emerge in stress tests, said the people, who asked not be identified because the talks are private.