FT: KKR, Italian banks in talks to pool billions of euros of bad loans

|By:, SA News Editor

UniCredit (UNCFF) and Intesa Sanpaolo (IITOF) are teaming up with KKR (KKR) and restructuring adviser Alvarez & Marsal to form a vehicle that could pool several billion euros of the Italian banks' bad loans, the FT reports.

Last month, UniCredit formed an internal "bad" bank to house €87B ($120B) of loans, two-thirds of which are impaired. Shortly after, Intesa but €46B of assets into a new bad bank. Both companies have taken massive losses on the loans.