Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a 5 billion-euro ($5.2 billion) capital increase, leading to what would be the country’s biggest bank nationalization in decades, said people with knowledge of the matter.
The Italian cabinet may meet as early as Thursday evening to approve a bank decree that will include measures to cover any funds missing in Monte Paschi’s recapitalization, a senior official said, asking not to be identified before the decree is presented to cabinet.
