Investors Focus on Developments in a Controversial Bank Rescue

Growth and inflation outlooks drive stocks.
Publish date:

Bank stocks around Europe are likely to be in focus after Italy laid out plans over the weekend to wind up two failed lenders - Veneto Banca and Popolare di Vicenza - at a cost of around €17 billion to Italian taxpayers. The plans, which include a €5.2 billion payment to Intesa Sanpaolo (ISNPY) , the country's second-largest bank, as well as further state guarantees, are likely to raise significant concerns over Europe's newly-adopted bank rescue rules, which were designed to allow for the use of taxpayer funds only as a last resort.

This article was written by a staff member of TheStreet.