Wednesday, December 23, 2015

Banks: Vestager-Hill, use the interbank fund subject to the rules on state aid – Il Sole 24 Ore

12/23/2015 15:56

 The letter of 19 November Padoan
  
  (Il Sole 24 Ore Thomson Financial) – Milan, Dec. 23 – “If a state
 member decides to use a mechanism of deposit guarantee
 to recapitalize a bank, which as indicated rightly
 your services and ‘allowed under Article 11
 the directive on deposit guarantee mechanism,
 Nevertheless, the involvement of such a mechanism and ‘subject
 European rules on state aid contained in
 Communication on the banks. “And ‘what they write
 Margrethe Vestager and Jonathan Hill, the EU Commissioners
 Competition and Stability ‘financial, in the letter
 sent to the Minister of Economy Pier Carlo Padoan 19
 November, shortly before then, of government intervention that
 saved Banca Marche, Banca Etruria, and CariChieti
 CariFerrara through activation of the bail-in, which has
 caused the loss of investment for holders
 subordinated bonds. According to the government and ‘it was this
 letter dated 19 November to prevent a less bloody solution
 through the use of the Deposit Protection Fund (FITD).
“If an assessment leads to the conclusion that the use of
 mechanism of deposit insurance is state aid
 - Reads the letter of Commissioners – then it will be ‘made
 take the resolution of the bank under the Directive
 the recovery and resolution of banks that defines
 the “extraordinary public financial support” as “” help
 status … in order to preserve or restore the
 sustainability ‘, liquidity’ or solvency ‘of an institution
 financial “. Therefore, the commissioners added,” would
 applying the conditionality ‘based on the Directive on
 recovery and resolution of banks “. If you use
 the protection fund would not be considered as aid
 state but as a purely private action, then
 would trigger the Directive on the reorganization and
 bank resolution.
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 (RADIOCOR) 12/15/23 15:56:15 (0304) 3 NNNN
  
 

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