ROME, March 17 Troubled Italian banks Popolare
di Vicenza and Veneto Banca are likely to formally ask the
Treasury on Friday for a precautionary recapitalisation, two
sources close to the matter said.
Italy is discussing with European authorities a 5 billion
euro ($5.3 billion) rescue scheme for the two lenders, which are
both controlled by Italy's privately-funded banking industry
bailout fund Atlante.
They must be deemed viable and have their restructuring plan
approved by Brussels to unlock state aid.
(Reporting by Stefano Bernabei, writing by Gavin Jones; editing
by Agnieszka Flak)