How is it possible that Antonio Fazio is still the governor of the Bank of Italy?
After announcing his support for domestic ownership of Italian banks, critics this summer accused Mr Fazio of openly favouring Banca Popolare Italiana over ABN Amro in a takeover contest. In doing so, he overruled the opinion of his own employees about BPI's financial stability, and for this decision he will be questioned by Italian prosecutors. Since then, Silvio Berlusconi, the Italian prime minister has declared the permanence of Mr Fazio's position as head of the central bank "incompatible with the international credibility of our country"; one economy minister has resigned, refusing to travel with him to Washington; and the new one denied him the right to represent Italy in a World Bank meeting. How can he still be in office?
