ECB closes 2 Italian banks
The European Central Bank has told two small Italian banks to wind up. It said in a statement Veneto Banca and Banca Popolare di Vicenza, both based in northern Italy, had failed or were likely to fail because they did not have enough capital to meet regulatory requirements. These two banks have become the second and third banks to be declared effectively dead by the central bank, which has powers to supervise eurozone banks. Earlier, it had closed Spain’s Banco Popular, which was that country’s fifth largest bank. Analysts said shareholders of the two Italian banks will lose their money, as will investors in so-called junior bonds that are intended to absorb losses first. However, deposits in the bank will be protected, as will investors in so-called senior bonds.