Bailout of Italy's oldest bank stalled over concerns of 'being overly generous'
Plans to support Italy's oldest bank are reported to have stalled following a communication breakdown between the EU and the European Central Bank (ECB).
In one of the first major tests of Europe's reformed rules regarding aid for troubled financial institutions, the ECB’s supervisory wing believes that it needs to wait for approval from the European Commission before stepping in, while the Commission is waiting for the ECB to agree to a capital plan for the bank.
This is reported by The Financial Times in which a source described the delay as "surreal."
The ECB's supervisors believe that bank needs some €8.8bn - while policymakers are worried that being overly generous will set a dangerous precedent.
