The central bank’s intervention was prompted by the resignation Wednesday of a majority of Banca Carige’s board of directors. The European Central Bank (ECB) has taken control of Italy’s Banca Carige following the resignation of the majority of its board of directors, after they failed to raise much-needed capital. The ECB promptly established a six-person team to manage the struggling mid-sized bank, the first occasion it has done so since gaining greater powers to oversee lenders in 2014. In an interview with Italian newspaper Corriere della Sera, Mario Draghi, president of the ECB, said that he had been “very surprised” by the decision and would have preferred for the bank The ECB’s intervention appears to have encouraged investors that a larger crisis is not imminent, but uncertainty over the lender could yet provoke problems.
The European Central Bank (ECB) has taken control of Italy’s Banca Carige following the resignation of the majority of its board of directors, after they failed to raise much-needed capital. The ECB promptly established a six-person team to manage the struggling mid-sized bank, the first occasion it has done so since gaining greater powers to oversee lenders in 2014. In an interview with Italian newspaper Corriere della Sera, Mario Draghi, president of the ECB, said that he had been “very surprised” by the decision and would have preferred for the bank The ECB’s intervention appears to have encouraged investors that a larger crisis is not imminent, but uncertainty over the lender could yet provoke problems.