Italy looks to shift more costly deadwood from its banks

Italy is in talks with funds to take over bad bank loans

Reuters have picked up story that Italy is having talks on using distressed asset funds taking over bad bank loans. The vehicle could be set up next year for bad loans with private investors taking the lions share of the risk. If it happens then bad loans would not need state guarantees

There's still a lot of toxic waste at banks and this would be a very positive move for Italy, and Europe in general, if more of it is shifted