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situation report

Dec 21, 2016 | 16:09 GMT

Italy: Private Recapitalization Plan For Major Bank Fails, State Rescue Set To Take Place

A private 5 billion euro ($5.22 billion) recapitalization plan to save Italy's third largest lender, Monte dei Paschi di Siena, collapsed Dec. 21, Financial Times reported. The rescue plan failed to find an anchor investor, according to several informed sources. Italy's government will now move forward with a state-run rescue plan to save the bank, sources said. Both houses of the country's parliament approved Dec. 21 a possible 20 billion euro ($20.85 billion) rescue of some of the country's struggling banks. Though the Italian government created a special fund earlier this year to buy bad debt from banks in distress, its 4 billion euros are nowhere near enough to provide a sustainable solution for Italy's foundering banking sector.

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Italy: Private Recapitalization Plan For Major Bank Fails, State Rescue Set To Take Place
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