Monte Paschi Scandal Threatens Frontrunner in Italy Election
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Banca Monte dei Paschi di Siena SpA’s revelation of more than 700 million euros ($942 million) in losses from unreported structured-finance deals is roiling the campaign for next month’s parliamentary elections and threatens to hurt frontrunner Pier Luigi Bersani.
Bersani’s Democratic Party, which leads in opinion polls, must take some responsibility for the turmoil at the nation’s third-biggest bank, Prime Minister Mario Monti said today in an interview on Radio Anch’io. The Democratic Party, or PD, runs the local government in Siena, where Monte Paschi is based, and controls the foundation that owns 38 percent of the company.