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Italian Bank Shares Slump as Renzi Loss Adds to Uncertainty

  • UniCredit, Monte Paschi under pressure after referendum
  • Renzi resignation may complicate bank plans to raise capital
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Italian Referendum: What’s Next for Banks, Government?

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UniCredit Group AG and Banca Monte dei Paschi di Siena SpA fell along with most Italian bank shares after Prime Minister Matteo Renzi’s decision to resign added to uncertainty about their plans for shoring up their finances.

Monte Paschi will decide within the next few days whether it will proceed with a planned capital increase, people with knowledge of the matter said. The underwriters, who met with the bank’s executives on Monday, are still waiting for a formal commitment from possible anchor investors, the people said, asking to not be identified because the matter is private. Potential investors are seeking more time to review the political situation after the referendum, according to the people.