Paschi Bill May Rise With Potential $1.75 Billion Capital Hike
- Monte Paschi may need to raise capital on legal provisions
- Italian Treasury officials discussed plan with Paschi CEO
Photographer: Alessia Pierdomenico/Bloomberg
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Italian taxpayers may need to inject more than Banca Monte dei Paschi di Siena SpA’s entire market value into the troubled bank as its leadership and the Finance Ministry consider a capital increase of about 1.5 billion euros ($1.8 billion).
Officials at the ministry and Monte Paschi Chief Executive Officer Guido Bastianini discussed the recapitalization as they reviewed options to boost the bank’s stretched capital, according to people familiar with the discussion, who asked not to be named as the matter is private.