For the third time, the Italian government attemts to rescue Monte dei Paschi, the world's oldest bank. Rome packed a 20 billion Euro rescue package. But more will be needed soon.
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.
The head of Germany's central bank, Jens Weidmann, has said the planned state-funded rescue of Italian lender Monte dei Paschi needs to be analyzed very carefully. He fears the scheme may not comply with new EU rules.
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.
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