Tough love

Rome’s fiddling hasn’t done Italian banks any favours. Italy has belatedly come up with E10-12bn of bailout loans for its banks. But the heavily indebted government cannot do much more. That’s hard for all the banks, as the sinking Italian economy spawns big losses. It could prove especially tough for Intesa Sanpaolo (ISP) and Unicredit, Italy’s largest, which also share substantial exposure to eastern Europe. Investors are worried. The market capitalisation of the country’s banks has dropped 2...