ROME, June 7 The only option Italy is
considering to help two ailing Veneto-based banks is that of a
precautionary recapitalisation by the state, a government source
said on Wednesday.
The source dismissed a report in Corriere della Sera daily
which said the government was also exploring the possibility of
an "orderly liquidation" of the two lenders, Banca Popolare di
Vicenza and Veneto Banca.
The two banks are stuck in negotiations with European
authorities over whether they can be rescued by the state, with
the European Commission demanding a capital injection of 1.2
billion euros by private investors before any state money can be
(Reporting by Giuseppe Fonte, editing by Silvia Aloisi)