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Intesa Shedding Up to €20 Billion of Assets as ECB Faults Risk
Intesa Sanpaolo SpA is cutting risk-weighted assets by as much as €20 billion ($21.6 billion) after the European Central Bank faulted the lender’s calculations of how much risk it faces. The Italian bank, which comfortably exceeds its capital requirements, is carrying out the reduction via the sale of loans and other assets, according to people familiar with the matter. It’s also looking at so-called synthetic securitization, which generally involves investors assuming the risk of losses for a fee, the people said, asking to remain anonymous as the matter is private. The euro area’s top banking watchdog found ... (full story)