You will lose your multi-million bet


Italy began winding up two failed regional banks in June in a deal that committed up to 17 billion euros ($19 billion) of public money and put the lenders’ good assets in the hands of Intesa Sanpaolo.

The government will pay 5.2 billion euros to Intesa, and give it guarantees of up to 12 billion euros, so that it will take over the remains of Popolare di Vicenza and Veneto Banca.

Now Intesa is again part of the rescue of another bank, Carige, which has been given until the end of 2017 to strengthen its balance sheet. That deadline imposed by the ECB.

CEO Carlo Messina said the bank was making the best of a bad situation after buying the low-ranking debt of Banca Carige in 2010.

“Having this subordinated debt in the portfolio, the best way to reduce the negative impact is to convert into senior debt so there is a minimum loss,” he said.

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