Italy’s Bank Dividend Feast Thrown Into Doubt After Windfall Tax

Italy’s unexpected levy on banks’ windfall profits is throwing some of Europe’s most generous investor payout policies into question.

“The remarkable remuneration plans outlined by Italian banks are likely to be revised if the tax will become effective,” said Vincenzo Longo, a market strategist at IG. “According to preliminary estimates the levy could cost banks more than €2 billion ($2.2 billion), forcing them to reduce the pool of money for buybacks and dividends.”