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Banca Monte dei Paschi di Siena may not survive the twin threats of a gruesomely expensive takeover gone bad and a derivatives scandal that may result in legal action against the bank’s former executives.
Banca Monte dei Paschi di Siena may not survive the twin threats of a gruesomely expensive takeover gone bad and a derivatives scandal that may result in legal action against the bank’s former executives.
(STEFANO RELLANDINI/REUTERS)

BREAKINGVIEWS

The agonizingly slow rescue of Monte dei Paschi

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

The world’s oldest bank is limping into the 21st century. Banca Monte dei Paschi di Siena’s stock jumped after the Italian bank proposed removing the voting rules favouring the foundation that is currently its majority owner. The move will help the stricken lender to attract new capital. All it needs now is a buyer.