Carige Bank, the Italian bank that has been battling bankruptcy for several years is still in trouble as BlackRock Inc., (NYSE: BLK) recently pulled out of a bailout package for the bank. The Italian lender is currently being managed by a team of special administrators appointed by the European Central Bank and is still in danger of bankruptcy.
BlackRock’s investment committee rejected the proposal of acquiring half of the new shares to be issued by the lender worth about €360 million ($403 million) as being too risky. The American asset manager’s withdrawal means that the Italian government could be forced to pay for the bailout in order to save the world’s oldest bank from collapsing.
News reports just in confirm that the ECB has reached out to the special administrators running the bank following BlackRock’s withdrawal, which could be a sign that the ECB could step in. Carige’s future hangs in the balance after the initial bailout deal collapsed, but it is highly unlikely that the lender will close for business given its importance to Italy.