Monte Paschi Wins EU Approval for Italian Bailout
This article is for subscribers only.
Banca Monte dei Paschi di Siena SpA, which pledged to cut its balance sheet by a quarter and curb trading, clinched European Union approval for a 3.9 billion-euro ($5.3 billion) bailout and 13 billion euros in state guarantees.
The European Commission said it’s satisfied that the bank’s plans to raise funds from investors and pay back the bailout within five years will help restore the bank to long-term viability. The bank will cut operating costs, cap management pay and reduce its risk profile with limits on its trading activities and a smaller sovereign bond profile, the EU authority said.