Glass-Steagall Moves Forward in Italy, while Eurozone pushes Bail-In
June 12, 2014 • 10:11AM

Tuscany: First Green Light for Glass-Steagall Draft Bill

The Institutional Affairs Committee of the Tuscany Regional Council has given the first green light to the new draft for a Glass-Steagall legislation introduced by Councilman Gabriele Chiurli. The draft is a complete bill that can be adopted by the National Parliament and become effective law.

The bill was presented by Chiurli before the Committee on June 10, and endorsed by Committee Chairman Marco Manneschi as well as by committee member Marco Spinelli (DP), who pointed out that the Tuscany congress had already voted up a resolution for Glass-Steagall. The next step is a Committee decision to send the bill to the floor, to be taken at the next meeting with a quorum, and a vote in the Council plenary session.

If the bill is approved by the Council, it will be sent to the National Parliament and will enjoy the same status as any draft legislation introduced by Parliament deputies or senators. At that point, the Senate Budget and Banking Committee, which has scheduled a discussion of all bills introduced in the Senate, will hopefully include the new text.

Eurogroup President Dijsselbloem Puts Bail-In on Priority Agenda

Jeroen Dijsselbloem, the president of the Eurogroup, comprising mainly the finance ministers of the Eurozone countries, was in Vienna yesterday, for talks on the banking situation there, and at a press conference, he told journalists that "bail-ins make a lot of sense, from both a budgetary as well as an economic point of view," not only in Austria, which is just implementing a EU900 million bail-in for the ailing Hypo Alpe Adria bank, but everywhere else in Europe.

He issued a statement the same day, announcing that Euro area Member States had just "reached a political understanding on the operational framework" for the European Stability Mechanism mandating bail-in as part of any bank rescue operations.

Dijsselbloem had been the first EU official, in the spring of 2013, to state that the Cyprus bail-in was a blueprint for the rest of Europe.

As Dijsselbloem was in Vienna hyping bail-in, Standard & Poor's announced that it had downgraded ratings for Hypo Alpe Adria and six other Austrian banks (Erste Group, Raiffeisen Zentralbank, Raiffeisen Bank International, KA Finanz, Hypo Niederösterreich, UniCredit Bank Austria), precisely because Austria is readying imposition of a 900-million-euro bail-in for Hypo Alpe Adria bank.