Italy To Nationalize Monte Paschi After Private Sector Rescue Fails

Wednesday, December 21, 2016
By Paul Martin

by Tyler Durden
ZeroHedge.com
Dec 21, 2016

Update: the FT writes that the Italian govt set to take a stake between 50% and 70% in Monte dei Paschi as part of the government’s third bailout in as many years.

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The third bailout, and re-nationalization, of Italy’s third largest banks is imminent following a Reuters report that the ongoing, JPM-led attempt to execute a complex private sector bailout of Monte Paschi has failed.

According to Reuters, Qatar’s sovereign wealth fund, long considered as the most likely anchor investor with a €1 billion allocation in any rescue plan cash call, decided it is unwilling to invest in the Italian bank, meanwhile Monte Paschi has been unable to find a replacement investor willing to put money in its privately funded rescue plan, less than 24 hours before the offer ends.

As a result, the bank entire share sale, which closes at 2 p.m. (1300 GMT) on Thursday, has drawn very little interest from the wider investment community.

The Rest…HERE

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