The terms of a state bailout scheme for Banca Monte dei Paschi di Siena, Italy’s third biggest lender, could pose more challenges to the bank’s performance, the European Central Bank said.
The ECB, which will supervise euro zone’s lenders from March 2014, also said on Thursday it was told by the Italian government too late into the process about the details of the rescue.
Monte dei Paschi was forced to request state aid after failing to meet tougher capital requirements set by the European Banking Authority (EBA).
Under the scheme, approved this week by the European Commission and currently before the Italian parliament, Monte dei Paschi will issue 3.9 billion euros ($5.17 billion) of bonds to the treasury.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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