The story of the Four Italian Banks put into resolution in November 2015, told by its protagonists in a recent book, shows how the new procedure introduced by the Brrd has generated dysfunctions and negative repercussions on the Italian banking industry. The criticalities found are to be ascribed to design choices underlying the European Banking Union which have prioritised the protection of State finances over the primary purpose of ensuring financial stability. To overcome the experienced shortcomings, the European Resolution Mechanism must be reformed on the model of the Us Fdic, restoring the preventive interventions of the Deposit Guarantee Systems based on «Purchase & Assume» (subsidised transfer of the healthy part of a failing bank). The Four Banks case indicates the correct approach to complete the European banking union: partner countries should start from experiences acquired in the application of current rules and plan solutions that work better in a climate of dialogue and trust.
