Scandal Hit Italian Bank Falls After Capital Increase

Shares of troubled Italian lender Banca Monte dei Paschi di Siena fell sharply on Tuesday following media report that its board is to discuss a capital increase in the coming months.

In a bid to stave off nationalization, the board of Banca Monte dei Paschi di Siena (BMPS) is expected to approve a capital increase of up to 3 billion euros ($4.1 billion) on Tuesday and could launch the rights issues as soon as January, according to a Reuters report on Monday.

In a statement Monday, the Tuscan lender said a board meeting had been called to discuss “capital operations”, without giving more details.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza