Italy bank bailout

TWO Italian banks are set for a £5.6bn rescue partly funded by rivals as the nation’s economic woes continue.

Regional lenders Banca Popolare di Vicenza and Veneto Banca are teetering on the brink, and the EU insists part of the bailout for them must come from the private purse. UniCredit and Intesa Sanpaolo, two of the nation’s biggest banks, are said to be in talks with the finance ministry about helping out.

It follows a Spanish merger this week in which Santander paid €1 for Banco Popular and agreed to pump in £6.1bn to boost its balance sheet.