Italy, Dombrovskis for the crisis banks precedes Brexit – Reuters Italy

BRUSSELS (Reuters) – The European Commissioner for Services financial, Valdis Dombrovskis, rejects the argument that the Italian banks are in crisis because of Brexit, diminishing the pressure of Rome in order to soften the EU rules on bank bailouts.

Heard by the economic Affairs Committee of the European Parliament, Dombrovskis has highlighted the low profitability and the amount of suffering that afflict Italians institutions.

“This is reflected, among other things, a decline in stock prices, “he said excluding the British referendum of June 23 could have created new systemic problems for Italian banks. “This is nothing new. It is something that is happening from the beginning of year.”

the shock triggered by the markets Brexit reinvigorated Italians efforts to obtain exemptions from the ‘bail in’, the principle that imposes losses on shareholders and creditors in case of bailouts at taxpayer expense.

the premier Matteo Renzi would assume a huge political risk hitting investors after the former Banca Marche, CariFerrara, CariChieti and Banca Etruria.

Italy has struck up a negotiation with the Commission European banks to recapitalize less solid, including MPS.

the Commission does not It opposes reimbursement forms for retail clients, especially if they bought financial assets without having been properly informed.

But Brussels insists that losses to private individuals must be imposed. So no protection can be recognized by institutional investors such as pension funds.

the measures to be taken “depend on the requirements of the Italian authorities,” said Dombrovskis in his first hearing since he became Commissioner for financial Services in place of Britain’s Jonathan Hill, who resigned after the Brexit. More …