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It’s crunch time for embattled Italian lender Banca Monte dei Paschi di Siena SpA.

All eyes are now on the Italian government, after it became clear late Wednesday that BMPS had failed to raise enough money to stave off a collapse. A state bailout is inevitable and could be announced as soon as Thursday, according to media reports.

Shares in BMPS sank as much as 10% on Thursday morning, but lately were trading in the green.

Monte dei Paschi has in recent weeks raced to raise €5 billion ($5.2 billion) from private investors to shore up its balance sheet and avoid being wound down by European regulators. However, it has run into major challenges. For example, uncertainty following the Italian referendum in early December dissuaded key investors to take part in the private rescue plan.

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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.

Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam

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