Rescue for Monte Paschi in doubt after Italian referendum defeat - FT
|According to Fast FT, a rescue package for Italy's troubled bank Monte dei Paschi di Siena is now in doubt following the defeat by prime minister Matteo Renzi in Sunday's Italian referendum on constitutional reforms.
As Fast FT reports: "Monte Paschi and advisers JP Morgan and Mediobanca will meet as early as Monday morning to decide whether to pull a plan to go ahead with a E5bn recapitalisation, according to people informed of the plan. Senior bankers will decide whether to pursue their underwriting commitment or exercise their right to exit the transaction due to adverse market conditions, these people said. In the event the banks drop the capital plan, the Italian state is expect to nationalise the bank, say senior bankers."
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