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Monte dei Paschi is the first case in which the European Central Bank has exercised its oversight role under new bank bailout rules.
Madrid's trump card in this latest game of euro-zone poker is that the consequences of a Spanish default and exit from the euro zone would probably be so catastrophic that policy makers in Berlin will be willing to bend their bailout rules for Spain, and are on the verge of doing just that.
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Greece was heading for a full-on collision with its international creditors on Sunday as Athens' uneasy coalition, struggling to meet the onerous terms of the country's latest bailout, ruled out layoffs in the public sector.
A no bailout rule with no exceptions.
E.U. anti-bailout rules prevent the government from giving the financial system a much-needed cash injection, and the Italian people aren't happy about it.
Various suggestions are made to fill the gaps created by the current architecture: establishing a shared-bailout rule to absorb the remaining losses, simplifying the organisation of banking groups and creating a truly federal deposit insurance scheme.
That arrangement was proposed by the then ECB president, Jean-Claude Trichet, in clear breach of the Maastricht treaty's no-bailout rule, which had been Germany's fundamental condition for giving up the deutschmark.
In other words, a strict no-bailout rule is needed and may even be more effective for imposing more budget discipline.
But since the bailout, the rules of banker pay are bending.
Frustrated by federal policies like the bank bailout and rules allowing wolves to prowl the West, they drafted so-called sovereignty resolutions, aggressive interpretations of states' rights outlined in the Tenth Amendment.
Yet, the Treasury official's statement on the draft financial bailout lobbying rules does not mention other parties as being included in the ban.
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