ECB issues warning to Italian Bank

The terms of a state bailout scheme for Banca Monte dei Paschi di Siena, Italy’s third biggest lender, could pose more challenges to the bank’s performance, the European Central Bank said.

The ECB, which will supervise euro zone’s lenders from March 2014, also said on Thursday it was told by the Italian government too late into the process about the details of the rescue.

Monte dei Paschi was forced to request state aid after failing to meet tougher capital requirements set by the European Banking Authority (EBA).

Under the scheme, approved this week by the European Commission and currently before the Italian parliament, Monte dei Paschi will issue 3.9 billion euros ($5.17 billion) of bonds to the treasury.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.