Italy's Chilling Lesson For EU "Bail-In" Rule

``As a matter of fact, putting aside the fact that this directive legalises the looting of depositors' savings, as we've said before, one could consider, at least, that the BRRD could quickly solve a banking crisis -- in a bloody fashion but, nevertheless, in an efficient manner. In reality, this is true only if all of a country's banks are going under at the same time (as in Cyprus in 2013). But the case of Italy is showing another scenario: when one or several regional banks (or a large systemic bank) go bust, implementing the BRRD leads to the spoliation of hundreds of thousands of clients, which provokes a shock throughout the entire country and starts a bank run in the other banks, which, in turn, puts the whole financial system in jeopardy. This is what Matteo Renzi is scared of, and it explains his eagerness to fix the problem before December 31st. ''