HALISTER: Italy Hires JPMorgan for EU50b ‘Bad Bank’ Plan: S. Telegraph

Italy Hires JPMorgan for EU50b ‘Bad Bank’ Plan: S. Telegraph

(Bloomberg) -- Italian govt appoints JPMorgan to work on plans to set up bank to buy troubled loans from the country’s lenders at ~20% of face value, Sunday Telegraph reports, without saying where it got the information.
  • EU10b of public money could be used to buy NPLs, taking “bad” assets with a face value of ~EU50b, allowing banks to start giving out more good loans: newspaper
  • EU may oppose plan because it doesn’t want taxpayers bailing out banks before private investors absorb any losses; other ideas are being considered to help Italian banks
  • JPMorgan declined to comment: newspaper
Alert: HALISTER
Source: BFW (Bloomberg First Word)

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