Italy FTSE MIB cheers bank "rescue"
The Italian FTSE MIB was a big gainer today (up 0.81%) as the market cheered the confirmation that the Italian government would save the Banca Popolare di Vicenza and Venet Banca via a purchase - with state help - of the banks "sound assets" by Intesa Sanpaolo. They also ensured that Intesa Sanpaolo's investors would suffer no worsening of capital ratios. Detractors are questioning if the move is in effect a bailout from taxpayers. According to the deal, the Italian government could still be on the hook for up to E17 billion if the assets sour.
The other EU also advanced:
- German Dax rose by 0.3%
- France's Cac up 0.7%
- UK FTSE up 0.4%
- Spain's Ibex up 0.3%
- Portugal I20 up 0.65%