Deals
Italy Banks May Need EU Safety Valve for Crisis, Millstein Says
- Millstein says potential contagion tied to recapitalization
- Solution in Italy could be similar to TARP in U.S., he says
Italian Bank Debt Changes Game for Renzi
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The European Union may eventually help prop up the Italian banking system as the country seeks to recapitalize the institutions while minimizing the burden on its citizens, according to Jim Millstein, the former U.S. Treasury Department restructuring chief.
There’s a risk of “potential financial contagion” under rules designed to limit taxpayer bailout costs by inflicting losses on investors when banks fall short on capital, Millstein, who now runs his own firm, said Tuesday in a Bloomberg Television interview.