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Bail-in rules introduced five years ago have far-reaching consequences for the bloc
The rescue of MPS, which has about 8 per cent of Italian deposits, should be welcomed
Recapitalisation of lender will remove a significant weight from the Italian financial system
Banning short selling does nothing to forestall bond sell-offs
But workings of the ‘resolution’ mechanism should be transparent
Santander takeover of Spanish rival forces last minute change to regulatory plans
Recovery may well require significant extra capital
Successive governments have failed to confront problems plaguing the sector
Investor bail-in and deep restructuring agreed for Italy’s oldest bank
Differences remain over job cuts and executive salaries
Differing views on merits of taxpayer bailouts cast doubt on rescue of ailing bank
Italian bank may have to reveal source of some of its loans as part of €6.5bn bailout
Criticism follows central bank’s calculation that MPS needs €8.8bn of fresh capital
Italy’s third-largest bank has larger capital shortfall than previously thought
Significant rise in cost to government of rescuing Italy’s third-largest bank
So long as structural problems fester, more rescues will be needed
Answers seem clear in Italy and Spain but what of Europe’s other lenders?
Concern that move risks undermining EU rules aimed at ending state rescues
International Edition