You will lose your multi-million bet

Italy began winding up two failed regional banks in June in a deal that will committed up to 17 billion euros ($19 billion) of public money as well as put the lenders’ not bad assets inside the hands of Intesa Sanpaolo.

The government will pay 5.2 billion euros to Intesa, as well as give the idea guarantees of up to 12 billion euros, doing sure that will the idea will take over the remains of Popolare di Vicenza as well as Veneto Banca.

currently Intesa can be again part of the rescue of another bank, Carige, which has been given until the end of 2017 to strengthen its balance sheet. that will deadline imposed by the ECB.

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

“Having that will subordinated debt inside the portfolio, the best way to reduce the negative impact can be to convert into senior debt so there can be a minimum loss,” he said.

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