Italy Said to Review Decree to Help Bank Recapitalization
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Italy may approve a decree to help banks to boost capital through the sale of bonds to the government, as Banca Monte dei Paschi di Siena SpA prepares to raise at least 1 billion euros ($1.3 billion) using the securities, two people familiar with the matter said.
Ministers may pass the measure as soon as today at a Cabinet meeting in Rome, said the people, who asked not to be identified because the matter isn’t public yet. The legislation probably will be similar to the decree approved in 2009 that allowed lenders to issue so-called Tremonti-bonds, which were named after then Treasury Minister Giulio Tremonti, one of the people said.