Monti Says Monte Paschi Bailout Hinges on Bank of Italy
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Banca Monte dei Paschi di Siena SpA’s 3.9 billion-euro ($5.2 billion) government bailout may face a delay after Prime Minister Mario Monti called for a further review of the bank’s accounts.
Monti said the Bank of Italy will take another look at the bank’s books after the company disclosed this week it may face more than 700 million euros of losses related to structured finance transactions hidden from regulators. Monte Paschi shareholders are voting on a capital increase today to pave the way for the emergency government loans.