Italian saga adds to bail-in doubt

摘要

The European Central Bank's approval of Italy's bailout of Veneto banca and banca popolare di vicenza has highlighted the feeble application of post-crisis rules for distressed lenders and triggered a rally in the duo's senior bonds. Both banks confirmed last Tuesday that the ECB had indicated they qualified for a so-called "precautionary recapitalisation" by the state, prompting strong gains in their senior-ranked bonds.