Italian Banks on Losing Streak After Bad-Loan Deal Disappoints
- Monte dei Paschi shares down more than 40 percent this year
- Plan seen making little impact in short term, mergers key
Pedestrians pass a Banca Monte dei Paschi di Siena SpA bank branch in Rome.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Banca Monte dei Paschi di Siena SpA led a slump in Italian banking shares after Italy’s long-sought deal on bad debts with the European Union disappointed investors.
Monte dei Paschi, bailed out twice since 2009, fell 10 percent by 1:48 p.m. in Milan trading, bringing losses this year to 45 percent. The eight biggest decliners among the 46 members of the Stoxx Europe 600 Banks Index were Italian lenders on Thursday.