Economics
Italian Bank Debt Changes Game for Renzi With Voters on the Hook
- Renzi’s calculations complicated by retail bonds, referendum
- Padoan tells reporters Italian banks not on Brussels agenda
There are Too Many Banks in Europe, Says Armstrong
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The world’s oldest bank is a reminder of one of democracy’s oldest lessons: Costing voters money can also risk costing you your job.
Banca Monte dei Paschi di Siena SpA was founded in 1472, but has a very modern Italian problem. The lender has about 10.7 billion euros ($12 billion) of bonds with an initial investment designed to attract ordinary families, data compiled by Bloomberg show. It’s just the tip of the iceberg: Italian banks together have sold more than 180 billion euros of similar securities as depositors looked for better rates of return.