Europe’s Banks May Get Rescue Path After Bailout Ruling (1)

Banks may have been given a new way to receive bailouts without violating of European Union rules against state aid.

The EU’s general court,the bloc’s second-highest tribunal, March 19 ruled that the 2013 rescue of Banca Tercas SpA by the Italian deposit guarantee scheme and the lender’s subsequent sale to Banca Popolare di Bari SCpA didn’t violate the law.

If the ruling stands, funds in deposit insurance systems could be put to work not only to reimburse savers, but also to rescue lenders, making them more like the U.S. Federal Deposit Insurance Corporation. The court overturned a decision by ...