Italy’s Bank Investor Bailout May Get EU Nod Despite Protests
- Commissioner Vestager signals support in Bloomberg interview
- Lawmakers say automatic refunds erode post-crisis framework
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The European Union’s competition chief signaled that she’s open to allowing Italy to compensate investors who lost money in recent bank failures, even as some lawmakers in Brussels say the measure skews post-crisis rules meant to keep taxpayers off the hook.
Commissioner Margrethe Vestager, speaking in an interview on Bloomberg TV, said it’s “absolutely justified” for Italy to reimburse investors who thought they had a regular savings account when in fact they had been sold risky financial products by banks that later got into trouble.