Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Italy PM's party presents bill to split retail and investment banks

Italy PM's party presents bill to split retail and investment banks

Italian Prime Minister Giorgia Meloni's party has presented a bill in parliament to separate retail and investment banks in a move that, if approved, would force a radical overhaul of the country's banking sector.
The proposal by the Brothers of Italy (FdI) party comes in the wake of the collapse of U.S. tech lender Silicon Valley Bank (SVB) and the emergency takeover of Credit Suisse by banking rival UBS, which raised fears of systemic stress that could lead to more bank failures.

The draft law, seen by Reuters on Wednesday, would give banks 12 months to reorganise their operations and choose between commercial and financial investment activities.

Quietly introduced to the lower house of parliament on March 17, the bill is sponsored by the head of FdI in the lower Chamber of Deputies, Tommaso Foti, and fourteen party colleagues, including former Economy Minister Giulio Tremonti.

FdI proposed a near-identical law in 2018, when the party was in opposition and with Meloni as the bill's chief sponsor, but it did not go past committee stage and never reached the floor of the house for approval.

"We believe that the issue is worthy of attention and therefore we have decided to present the bill again," Foti told Reuters.

"Meloni's office was not informed about the legislative proposal as parliamentary initiatives are distinct from government ones," Foti said, adding he was confident the bill could be successful.

Meloni's office did not immediately respond to a request for comment about the government's view of the bill.

The overhaul would de-facto reintroduce 1930s-era legislation scrapped in the 1990s by deregulation reforms that some left- and right-wing politicians blame for contributing to recent financial crises.

Allowing retail banks to engage in "speculative trading" is "dramatically negative for the real economy and undermines the most elementary principles of safeguard for the social and ethical foundation of the economy," the FdI bill states.

In the United States, calls for similar reforms, with the reintroduction of the 1933 Glass-Steagall Act that separated commercial and investment banking before World War II, have come from left-wingers within the Democratic Party, such as Senator Elizabeth Warren.
Newsletter

Related Articles

0:00
0:00
Close
EU Relocates Summit to Punish Hungary over Orban's Ukraine Visit
World's Hottest Day Recorded on July 21
President Biden Returns to White House After Testing COVID Negative
Thousands Protest in Mallorca Against Mass Tourism
Hacking Vulnerabilities: Androids vs. iPhones
Ukraine Crisis Should Be EU's Responsibility, Says Trump’s Envoy
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Erdogan Challenges NATO Stance at 75th Anniversary Meeting
Hungary's Orban Shakes Up EU Leadership
German National Sentenced to Death in Belarus
Elon Musk's Companies Drop CrowdStrike After Global Windows 10 Outage
Trump Pledges to End Ukraine Conflict if Reelected
Global IT Outage Unveils Digital Vulnerabilities
US Criticizes International Court's Opinion on Israeli Occupation
EU’s Patronizing Attitude Towards Africa Revealed
Ukraine to Receive First One and a Half Billion Dollars of Seized Russian Funds
Netanyahu Denounces World Court Ruling on Israeli Occupation
Massive Flight Cancellations Across the U.S. Due to Microsoft Outage
Russia Accuses Ukraine of Using Chemical Weapons
Ursula von der Leyen Wins Second Term as European Commission President
Police Officer Injured in Attack in Central Paris
Record Heat Temperatures in Ukraine Amid Power Crisis
Japan to Allocate $3.3 Billion to Ukraine Using Frozen Russian Assets
EU Parliament Condemns Hungarian PM's Russia Visit
FBI Struggles to Find Motive Behind Trump Shooting Incident
Kremlin Criticizes EU Rejection of Orban’s Ukraine Peace Proposal
Russia's Electronic Warfare Neutralizes Western Weapons in Ukraine
Trump Challenges Biden to Debate and Golf Match
Macron Accuses Israeli Minister of Election Interference
US Senator Highlights Weaknesses in Western Military Industry During Ukraine Conflict
George Clooney Urges Biden to Withdraw from Presidential Race
Political Shift in the UK: A Detailed Analysis of Labour's Victory and Future Prospects
Viktor Orbán's Peace Mission: A Diplomatic Controversy in the EU
India Advocates Peace and Prosperity: PM Modi's Speech in Austria
New UK PM Keir Starmer Reaffirms Strong Support for Ukraine at NATO Summit
Spain PM Pedro Sanchez Denounces Double Standards on Gaza at NATO Summit
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
France Faces Political Turmoil and Airport Strikes Ahead of Paris Olympics 2024
Putin Hosts PM Modi for a Private Meeting
Boeing Pleads Guilty Over 737 MAX Crashes
2024 Predicted to Be World's Hottest Year
White House Denies Biden Being Treated for Parkinson's Disease
Biden to Meet New UK Prime Minister Keir Starmer
Biden Insists on Continuing Presidential Race Amid Criticism
UK Defence Minister Pledges Enhanced Support to Ukraine
French Prime Minister Gabriel Attal Resigns After Election Setback
Macron Faces New Political Challenges Despite Election Relief
France's Far-Right Falls Short in Parliamentary Elections
×