European Banks With Bad Loans May Get Help From the EU

  • EU negotiators are wrapping up talks on capital, failure rules
  • Finance ministers may decide on final deal at Dec. 4 meeting
Photographer: Jasper Juinen/Bloomberg
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Banks from Greece to Italy that are struggling to get rid of a mountain of bad loans may soon get some help from European Union lawmakers.

A bill that’s nearing the finish line in Brussels would soften the capital hit banks usually face when they sell non-performing loans at a loss. That could give a boost to Italian lenders, which are sitting on the EU’s biggest pile of soured debt -- 174 billion eurosBloomberg Terminal ($196 billion) -- that’s often difficult to unload.