Bank of Italy's head in trouble... what will happen?
Antonio Fazio, the Bank of Italy's governor, has been found calling a friend of him that was competing with Abn Amro (the Dutch bank) in trying to buy an important Italian bank. The phone call was recorded and published in major Italian newspapers. Fazio was clearly supportive to the Italian raider and against the Dutch. He shouldn't have been. He should be the referee, not the player in this kind of match.
The noise about this affaire is big in Italy. But there is no way to understand what will happen. Fazio is not going to be heared by the tribunal. And he could - or could not - resign. But there is no clear way for an institutional impeachment.
Italian banking system is very much damaged by the story. Italian interests are damaged. But the Italian institutional system is not able to find a way to get rid of the problem. Thus, either there will be a sort of golpe against the Bank of Italy, or there will be a very Italian "let's-forget-about-it" solution.