Italian Bank Rescue – EU Banking Regulations and the "Italian Way"

Dirk Meyer, Helmut Schmidt University, University of the Bundeswehr Hamburg, explains the possible ways of dealing with the Italian banking crisis. EU banking regulations prescribe a new control mechanism involving the primary involvement of shareholders and subordinated bonds as well as deposits and savings of more than 100,000 euros. Considering the Italian situation and the measures already taken, a diversion from the bail-in mechanism is not out of the question.