Lawmakers Urge EU's Vestager to Halt Italy Scheme for Bank Shareholders Bailout

European Union lawmakers called on the EU’s competition chief Margrethe Vestager to block a scheme devised by the Italian government to automatically compensate shareholders of failed banks, a move seen as breaching EU rules on bank rescues, Reuters reported. Italy’s eurosceptic government on Wednesday adopted a decree that would allow automatic repayments for shareholders and bondholders of half a dozen banks who lost money when the lenders were liquidated. That pushed Vestager into a tough spot before EU elections in May in which she runs as candidate for the presidency of the next commission. The Danish liberal politician needs to choose between giving her green light to reimbursements which are popular with most voters in Italy or defending EU bail-in rules on bank rescues and state aid regulations. Read more

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