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Italy’s Monte Paschi Flunks Stress Test, Plans to Raise Capital

Italian treasury says Paschi won’t need any state bailout
Deutsche Bank outperforms Barclays in test of 51 banks

Bloomberg business news — Taking the Temperature of European Banks

By

Sonia Sirletti and

Alessandro Speciale

July 29, 2016, 8:02 PM UTCUpdated onJuly 30, 2016, 5:31 PM UTC

The world’s oldest bank is also Europe’s riskiest.

Italy’s Banca Monte dei Paschi di Siena SpA was the only one of 51 lenders tested by European regulators to have its capital wiped out in the exam’s toughest scenario. The bank, which has been bailed out twice by the government since 2009, said it plans to sell as much as 5 billion euros ($5.6 billion) of stock if it can offload a bad-loan portfolio.