How Monte Paschi Could Raise Funds as Bank Stress Tests Loom

  • Options include public backstop, debt-for-equity swap
  • Italy trying to avoid major losses for bank’s creditors

Italy’s Banca Monte dei Paschi di Siena SpA will probably get the lion’s share of investor attention when European bank stress tests are published on Friday. The examination by Europe’s banking authority could show that the lender needs as much as 3.5 billion euros ($3.8 billion), according to Credit Suisse Group AG analysts.

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