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2016-07-09 — reuters.com
Government sources say Italy is considering options to prop up the bank, including a state guarantee that would enable the bank to raise money it would otherwise struggle to secure from skeptical investors. Many bankers say the bank will inevitably have to raise around 3-4 billion euros ($3.3-4.4 billion).
... A state rescue of Monte dei Paschi would be the first real test of EU rules limiting the use of taxpayers' money to bail out investors. The rules require holders of the bank's shares and junior debt to bear some of the losses. Depositors with more than 100,000 euros would also be hit. The bank's share price has halved since Britain voted on June 23 to leave the EU, as investors stampede out of Italian banks on concerns that Brexit could send Italy back into recession and saddle them with even more bad debts. ... In Siena, where the bank has its headquarters in a 13th century fortress, anxious investors and local authorities want the government to ride to the rescue, even if it means squaring off with Brussels. source article | permalink | discuss | subscribe by: | RSS | email Comments: Be the first to add a comment add a comment | go to forum thread Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately. |