Luigi Zingales writes in Italy 24 that Italy’s bank rescue strategy amounts to little more than postponing a real solution and pretending the problems are not so severe. The establishment of the Atlante fund to buy up non-performing loans has done little more than feed the denial. Zingales notes that the 20 billion euro bailout of Monte dei Paschi bank last December is likely not enough, and asks, when will Italy resort to the European Stability Mechanism?
The main entrance of the Monte dei Paschi bank headquarters is seen in Siena, Italy March 13, 2012. Photo: Reuters, Max Rossi
Italy kicks the can on banks
Italy has been “extending and pretending” as their banking woes persist.