Editorial: Ending pretend and extend

Author: | Published: 8 Jul 2015

On June 26 KKR launched a platform that, though intended to support banks' exposures to under-performing assets, could have a far more profound effect on European lending.

The platform, which was initially mooted in April last year, is currently only being applied to two Italian banks, UniCredit and Intesa Sanpaulo. But it could be rolled out to other institutions in the country, and ultimately, throughout Europe. The premise is simple: banks cede control of their underperforming assets to KKR. These can be loans, equity or quasi...