Political turmoil is rarely a good backdrop for Italian bonds. This time seems different. An auction of government debt showed investors had little inclination to demand higher borrowing costs to offset the risks around the prospect of a populist, anti-immigration government of the Five Star Movement and the League. This shows the strength of the European Central Bank’s (ECB) firepower. ...

Citigroup Inc., soon after the financial crisis, split itself into two banks — a good one and a bad one. Citi said it was going to sell the latter, which included a subprime loan portfolio and other businesses that had gotten it into trouble. But it never did. Eventually CEO Michael Corbat did away with the charade and recombined them. ...

Theresa May’s government is still promising to quit Europe’s customs union when Brexit happens next year. The prime minister’s position is politically understandable, yet entirely indefensible. And it perfectly captures the bind Britain has gotten itself into. Staying in the European Union’s customs union after Brexit, or joining some specially tailored version of it, would leave the UK with a ...