European Central Bank Moves to Wind Down Two Italian Banks<br />But Veneto Banca and Banca Popolare di Vicenza are the first Italian banks to be declared effectively dead by the European Central Bank and wound down<br />By JACK EWINGJUNE 23, 2017<br />The European Central Bank effectively euthanized two small Italian banks late Friday, in another sign<br />that the eurozone financial system remains vulnerable even as the economy improves.<br />The central bank said in a statement that Veneto Banca<br />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.<br />The action is likely to raise questions about Monte dei Paschi di Siena, an Italian bank<br />that suffers from some of the same problems as the two banks that failed but is much larger.<br />The Italian government has established a 20 billion euro (about $22.4 billion)<br />fund to supply capital to Monte dei Paschi and other troubled Italian banks.
