Italian minister pledges protective measures

Italy became the third European country in two days to offer funds to struggling banks, reiterating a pledge to prevent any lender from failing and sending Italian financial shares higher.

Finance Minister Giulio Tremonti told lawmakers in Parliament yesterday the state would step in only if needed and that Italian banks remain solid.

Tremonti would not say how much the government will make available as part of a plan announced on Wednesday night that will allow the state to receive preference shares without voting rights in return for capital.