Italy Said to Weigh $44 Billion Banks Injection as Brexit Hits – Bloomberg

Italy’s government is considering injecting capital into some lenders battered by a fresh selloff in the wake of the U.K.’s decision to leave the European Union, according to people with knowledge of the talks.  The government is weighing measures that may add as much as 40 billion euros ($44 billion), said one person, asking not to be identified because the talks are private. The government may support lenders by providing capital or pledging guarantees, said the person. The amount is still under discussion and no final decision has been taken, according to the people.Italy’s government is seeking to stabilize a financial system, hurt by 360 billion euros of non-performing loans, sluggish economic growth and record-low interest rates after an earlier attempt to set up a bad bank with public funds met with resistance from the EU. The country was among the hardest hit by Friday’s market rout that wiped $2.5 trillion from global equity values, with some of Italy’s largest banks dropping more than 20 percent.

Source: Italy Said to Weigh $44 Billion Banks Injection as Brexit Hits – Bloomberg

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