World’s oldest Italian bank poised for state bailout as investors shun rescue plan

Sky News:

The world’s oldest bank is poised for a state bail-out after hopes for a private sector rescue crumbled.

The Italian government looks set to step in to save Banca Monte dei Paschi di Siena using a new €20bn package designed to prop up the country’s ailing banking sector.

Shares in the bank endured a torrid day on the Milan stock market – and were temporarily suspended – after it warned on Wednesday that it could run out of money within four months unless plans to raise new funds succeed.

It partly recovered when Italian legislators gave the green light to the banking rescue package.

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