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Intesa CEO sees risks on Italian government bonds, economy from Veneto banks
June 6, 2017 / 7:06 PM / 5 months ago

Intesa CEO sees risks on Italian government bonds, economy from Veneto banks

MILAN (Reuters) - The potential collapse of two Italian regional banks could impact both the country’s economy and its government bonds, the Chief Executive of Intesa Sanpaolo (ISP.MI) said on Tuesday.

FILE PHOTO: Carlo Messina, CEO of Intesa Sanpaolo Bank looks on during a shareholders meeting in Turin, Italy April 27, 2017. REUTERS/Giorgio Perottino/File Photo

Banca Popolare di Vicenza and Veneto Banca, both based in the north-eastern Veneto region, have requested a state bailout to help fill a combined capital shortfall of 6.4 billion euros ($7.21 billion).

However, sources have said the European Commission has demanded an additional injection of 1.2 billion euros by private investors before taxpayer money can be used, and Rome is struggling to find an investor willing to put up the money.

Intesa Sanpaolo CEO Carlo Messina repeated that his bank, Italy’s biggest retail lender, had already done its part by injecting money in the banking fund Atlante, which now is the top shareholder in the two regional lenders.

Reporting by Gianluca Semeraro; writing by Francesca Landini; editing by Steve Scherer

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