"The government is evaluating possible measures to reduce the negative effects of the resolution process on the socially weaker component of the investors involved" by the bailout of Banca Etruria, CariChieti, Cassa di Risparmio di Ferrara and Banca Marche. This was announced yesterday by the Deputy Minister of the Economy, Enrico Morando.
Also yesterday, the government filed the amendment to the Stability law, which contains the package of measures to save the four troubled banks. The provision enters the maneuver without modifications compared to the text approved by the council of ministers. The Commission has set the deadline for the presentation of the sub-amendments at 11 on Friday, which should include the intervention in favor of investors announced by Morando.
However, the margin for action seems limited, given that "the zeroing of the value of subordinated bonds, as such part of risk capital - explained the deputy minister - constitutes an inescapable constraint, imposed by the EU Commission to approve the interventions of the resolution fund. However, the government is aware that, at least to a part of the savers involved, the nature of the subordinated bond instrument may not have been perfectly known", especially as regards "the level of risk of the product purchased".
