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Italy's Third-Biggest Bank Is Running Out of Time

  • New CEO Morelli criss-crosses globe to pitch crucial offering
  • Rescue plan unfolding as Italians prepare for reform vote
1479876647_Banca Monte dei Paschi di Siena lede
Photographer: Marc Hill/Bloomberg
Updated on

The end game may have finally arrived for Banca Monte dei Paschi di Siena SpA.

For seven years, Italy’s third-biggest bank has repeatedly skidded to the edge of collapse, only to be bailed out by investors or the government. Now Chief Executive Officer Marco Morelli has until year-end to raise 5 billion euros ($5.3 billion) of capital -- seven times its current market value -- and offload almost 28 billion euros in soured loans to save the world’s oldest lender.