|Author (Corporate)||Cardiff EDC|
Reports of the reaction from national and international stakeholders following attempts to save Italy's Carige Bank from collapsing.
Following months of growing concern over the strength of Banca Carige and a set of liquidity crises, Italian banks decided in November 2018 to rescue the financial institution with the purchase of a €320 million hybrid bond. However, the bank's main shareholder blocked a new share issue in December of up to €400 million. The European Central Bank (ECB) decided on 2 January 2019 to appoint temporary administrators to take charge of the bank, in an unprecedented effort to save the lender. On the same day, Italy's market watchdog decided to halt trading in Carige's shares.
On 8 January, Italian authorities approved a decree setting up a €1.3 billion fund to cover potential costs of emergency measures to save this ailing bank. The decision was seen as a major U-turn by the country's leading Five Star Movement, which had in the past been critical of decisions that use taxpayer money to rescue private banks.
|Subject Categories||Business and Industry|
|Subject Tags||Financial Services|
|Countries / Regions||Italy|