Italian banks’ shares left shaky after surprise windfall tax

Italian government has agreed on a ‘windfall’ tax on bank profits generated by higher interest rates

UniCredit: Bank’s shares tumbled 6.7 per cent by lunchtime on Tuesday. Picture: Getty

Italian stocks dropped after a surprise new tax on bank profits sent the country’s lenders tumbling, erasing as much as €9.5 billion from their combined market capitalization.

Italy’s FTSE MIB fell 2.2 per cent, with shares at the country’s two largest banks - UniCredit and Intesa Sanpaolo - plunging 6.7 per cent and 8 per cent respectively at lunchtime on Tuesday.

Shares in state-owned Monte dei Paschi di Siena fell 9.8 per cent, while Banco ...