FIG’s big rally finds its limit: Italy’s second tier banks

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FIG’s big rally finds its limit: Italy’s second tier banks

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ILLUSTRATION - An Italian euro coin stands on an Italian flag in Schwerin, Germany, 15 May 2012. The rating agency Moody's downgraded the solvency of 26 Italian banks due to Italy's poor economic condition. Photo: JENS BUETTNER | Jens Büttner/DPA/PA Images

Conditions in the primary market have been nothing short of remarkable towards the end of February, with cash-rich investors chasing down new issues and letting banks get away without paying premiums. But FIG bankers say that there is one section of the market that is unlikely to be allowed to join in the party: Italy’s second tier banks. Tyler Davies reports.

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