MILAN, July 26 (Reuters) - The Italian unit of HSBC andother foreign banks were asked to invest in a new fund Italy istrying to set up to buy bad loans, the company's chiefexecutive, Marzio Perrelli, said on the sidelines of aconference in Milan.
"We were contacted, but in the context of a general soundingout of all the foreign banks," Perrelli said.
Italy's government is looking for ways to support strugglinglenders without breaking European Union state aid rules thatrequire investors to take a hit first, to shield taxpayers. (Reporting by Giulio Piovaccari, writing by Steve Scherer,editing by Isla Binnie)