Ten years after the financial crisis struck, many European banks are still in crisis mode. Europe's banking supervisor is calling for a 'bad bank' to be set up to absorb bad debts.
Italy's debt-ridden lender Monte dei Paschi di Siena has reported a net profit, signaling it's seeing better times after being rescued from the brink of collapse. A debt swap helped the bank return to the black.
Monte dei Paschi, the world’s oldest bank, will try to save itself by raising funds through the private sector. If this doesn’t work the government may yet step in to save one of Italy's third-largest bank.
Italy's Monte dei Paschi di Siena bank is to lose more than 20 percent of its staff as part of its public bailout plan. On Tuesday, the EU approved a multi-billion euro rescue that effectively nationalizes the lender.
Media reports have said the European Central Bank has refused to allow Italy's Monte dei Paschi di Siena more time to raise cash the bank needs to avoid being wound down. The lender's shares tanked on the news.
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