Dec
05
4 Bank Challenges for Italy’s Next Prime Minister
ByCleaning up Italy’s banks is an opportunity ripe for the wasting. The failed referendum on Sunday need not cause a crisis if UniCredit completes its rights issue and fellow lender Banca Monte dei Paschi di Siena can be quickly stabilized. Political turmoil and weak growth, though, could push up bad loan levels, and the political will to fix them may be lacking.
The collapse of Prime Minister Matteo Renzi’s government comes at a bad time for Italian lenders, which are collectively creaking with about 350 billion euros (about $377 billion) of bad and doubtful loans. The outgoing prime minister’s replacement will face four challenges…
4 Bank Challenges for Italy’s Next Prime Minister
