The rules seemed clear. After anger at how EU taxpayers had to meet the cost of bank rescues during the financial crisis, any more failing lenders would have to be dealt with, as far as possible, by their own shareholders and creditors.
But the 17bn of Italian government money committed at the weekend to deal with two failing regional banks seems to flout that idea.
Here we examine why the rescue of Veneto Banca and Banca Popolare di Vicenza is reverberating in Rome, Brussels and beyond.
What is the difference between liquidation and resolution?
Under the new EU rules, stricken banks are put into resolution, a legal process that hands sweeping powers to regulators to decide how to safely wind them down. The law, known as the Bank R…
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