From 2h ago 07.15 EDT Full story: Italy waters down windfall tax on banks after market rout Italy has watered down its new windfall tax on banks and set a cap on payouts, after the surprise levy spooked investors and sent shares in local lenders plunging. The country’s rightwing government, led by the prime minister, Giorgia Meloni, appeared to backtrack on terms of the windfall tax, less than 24 hours after it was announced. The government said on Tuesday night that lenders would pay no more than 0.1% of their assets – a fifth of the level the levy was…