Monte Paschi Clean-Up Would Still Leave Bank in Danger ZoneBy
Bank plans to sell bad loans and stock to reinforce buffers
Debt ratio would exceed safe level even after loans offloaded
Banca Monte dei Paschi di Siena SpA’s plan to offload $31 billion in doubtful loans, designed to attract investors to a share sale by reducing the bank’s risk of losses, will still leave it with a bad-debt level considered unsafe by industry standards.
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