MILAN, June 8 Italian banks are considering
assisting in a rescue of troubled lenders Popolare di Vicenza
and Veneto Banca by pumping 1.2 billion euros ($1.4 billion) of
private capital into the two regional banks, sources familiar
with the matter said.
The Italian government plans to lead the rescue but EU
competition authorities have requested a private capital
injection as a condition to approve the bailout. The two banks
need 6.4 billion euros in capital.
Italian banks, which have already pumped 3.4 billion euros
into the two ailing rivals, had said until now that they would
not stump up more money.
However, one source said on Thursday the banks were aware
that it would be much more costly for them if the two
Veneto-based banks were to be wound down. In that event, the
healthier lenders would need to top up a depositors' protection
The plan has the backing of some leading Italian banks but
the participation of the entire banking system is seen as
essential, the source said. Each bank would take part based on
the size of its deposits.
($1 = 0.8887 euros)
(Reporting by Paola Arosio,)