Extreme stress for MPS as EBA verdict looms

David Bell

July 28, 2016 08:00 PM

MPS CEO Fabrizio Viola 230x150 — Monte dei Paschi di Siena bank CEO Fabrizio Viola touches his face as he pauses before answering a reporter's question during a press conference at the Foreign Press Association in Milan, Italy, Monday, Jan. 28, 2013. Viola says the embattled bank increased its request for government aid by 500 million euro (672 million dollars) after incoming managers found a document in a company safe in late October indicating trading losses. Viola says the document tied together two complex financial trades that had until then seemed unrelated. He says neither had been accounted for on the books. Montipaschi is investigating three complex loss-making financial transactions that have become fodder for the campaign for next month's national elections. (AP Photo/Antonio Calanni) | Antonio Calanni/AP/Press Association Images

Staring down the barrel of a bail-in, Banca Monte dei Paschi di Siena (MPS) is scrambling to develop a market-based recapitalisation plan before the end of the week in a crucial first test of the European Union’s Bank Recovery and Resolution Directive, which could place immense political strain on the Italian government.

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Topics

Italy Monte dei Paschi RMBS Securitization

DB

David Bell