Monte Paschi Clean-Up Would Still Leave Bank in Danger Zone

  • Bank plans to sell bad loans and stock to reinforce buffers
  • Debt ratio would exceed safe level even after loans offloaded

Monte Paschi Worst of 51 Banks in EU Stress Tests

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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