Italy deposit fund can’t rescue Carige at present: banking lobby

FILE PHOTO: The logo of Carige bank is seen in Rome
FILE PHOTO: The logo of Carige bank is seen in Rome, Italy, April 9 2016. REUTERS/Alessandro Bianchi/File Photo

May 14, 2019

ROME (Reuters) – There are no legal grounds at present for a rescue of ailing Italian lender Carige by the country’s FITD depositor protection fund, the head of banking lobby ABI said on Tuesday.

Speaking to reporters, ABI Chairman Antonio Patuelli said it was still too early to apply a European Court of Justice ruling which had deemed legitimate the rescue of small lender Tercas by the FITD fund. The ruling contradicted the stance taken by the EU Commission on the matter.

“The ruling is not yet executive. Sixty days have not gone by yet from when it was notified. So this is a debate which has no legal basis,” Patuelli said when asked if FITD could rescue Carige after BlackRock dropped a potential bid for the lender.

(Reporting by Stefano Bernabei, writing by Valentina Za, editing by Mark Bendeich)

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