Monte Paschi Bailout Plan Has Some ECB Supervisors Grumbling
- Political consensus for rescue said to make dissent difficult
- EU bank-failure law allows precautionary aid to viable lenders
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When the European Central Bank declared Banca Monte dei Paschi di Siena SpA solvent last December, the first step toward a state-funded rescue, some members of the 19-nation Supervisory Board weren’t fully on board.
Confronted with what they saw as a political agreement to bail out the world’s oldest lender, dissenters went along with the consensus despite their concerns about the bank’s health, according to people familiar with the decision, who declined to be identified because the deliberations were private.