Is a Run on Italian Banks a Possibility?
Italy is considering injecting fresh capital into Banca Monte dei Paschi di Siena SpA to boost the finances of Italy’s third-biggest bank ahead of stress test results, a person with knowledge of the plan said. Italy would seek to use Article 32 of the European Union’s bank failure rules that allows temporary state aid if regulatory stress tests reveal a shortfall, said the person asking to not be identified because the plan is not public. Italy is in talks with European regulators to get approval, the person said. BNP Paribas Global Head of Equity Strategy Edmund Shing discusses with Bloomberg's Francine Lacqua on "The Pulse."