Italy and the EU appear to be moving toward an agreement - BBH

Research Team at BBH, notes that the Italy and the EU appear to be moving toward an agreement that could see new state funds. 

Key Quotes

“Some creditors will be bailed-in, as required, but the latest reports suggest that investors in a particular instrument could be exempt.  Monte Paschi issued subordinated debt in 2008 for an acquisition, and those bonds were marketed and sold to retail investors in 1000 euro increments.  They are selling for about 50 cents on the euro now.  Exempting those bonds may make good politics and economics, but it is crucial that in exchange for new funds, the bad loans must be dealt with.”