How To Guide For: A Look At The Banca Monte dei Paschi Bailout
The Banca Monte dei Paschi di Siena Bank, founded in 1472 as a Monte di Pietá (Pawn agency) to lend aid to the underprivileged classes of Siena, it is considered the oldest bank in the world. Today it is the leader of one of the top five banking groups in Italy, with significant market shares in all the sectors in which it operates. The Gruppo Montepaschi is active all over Italy and in the major international financial centers, with operations ranging from traditional banking activity to asset management and private banking (mutual funds, wealth management, pension funds, and life insurance policies), from investment banking to innovative business financing (project finance, merchant banking, and financial counseling), with a special vocation for “family” accounts and small and medium businesses. Monte dei Paschi previously stated that it had eleven months worth of money. Now the bank says that it will run out of money within four months unless its recapitalisation efforts were successful. This statement caused the stock to dip. But the price recovered somewhat with the news of a €20bn bailout fund. The bailout could be needed over the next week as the bank is running out of time to meet a European Central Bank (ECB) deadline of the year's end to raise €5bn from investors through the sale of new shares. To learn more about the Banca Monte dei Paschi bailout click on the pictures below to read the articles.