Monte dei Paschi's last-ditch rescue plan faces high hurdles

July 31st, 2016 by admin Leave a reply »

Monte dei Paschi's last-ditch rescue plan faces high hurdles

Man walks on a logo of the Monte Dei Paschi Di Siena bank in RomeWith the ink barely dry on its bailout plan, Italian bank Monte dei Paschi di Siena faces a Herculean task convincing investors to back a third recapitalization in as many years and avert a banking crisis that would send shockwaves across Europe. The plan aims to clean up and bolster the bank’s balance sheet once and for all, restoring to health a lender whose frailty threatens the wider Italian banking system, the savings of thousands of retail investors and the increasingly weak political standing of Prime Minister Matteo Renzi. A financial crisis in the euro zone’s third-biggest economy would also risk creating contagion across Europe, a region already reeling from Britain’s decision to leave the EU.

Source
Economy News Headlines – Yahoo! News

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