Investors Focus on Developments in a Controversial Bank Rescue
Growth and inflation outlooks drive stocks.
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.
