ML-Implode News - Italy's Latest Bank Bailout Has Created A Two-Speed Eurozone

The Italian government decided that although these banks might not be systemically important to the EU, they most certainly are to Italy. Claiming that allowing them to fail would cause disruption to the local economy in Venice, it bailed them out.
...
Remarkable. Winding up two banks in the Venetian area would cause massive economic disruption. So the solution is to create an effective banking monopoly in that area. And this doesn't distort competition, apparently. I detect a distinct odor of Eurofudge.

...

Portugal is no doubt furious, since not long ago it imposed a highly contentious haircut on senior creditors to recapitalize the BES 'good bank' Novo Banco. But I doubt if it would have gotten away with state recapitalization. It just isn't big or important enough.

We now have a two-speed Eurozone, made up of big countries that can do what they like, and small ones that must obey the rules set by the big ones.

Relevant:

Italy's Latest Bank Bailout Has Created A Two-Speed Eurozone