Aug
01
Monte Paschi’s 544-Year Journey From Farm Lending to Scandals
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World’s oldest bank running out of time and money amid crisis
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Bank unable to overcome derivatives deals that masked losses
Banca Monte dei Paschi di Siena SpA, the world’s oldest bank, is also Europe’s riskiest. In the region’s stress tests published last week, Monte Paschi’s capital was wiped out under the exam’s toughest scenario, the worst performance among the 51 banks examined.
To bolster its buffers, Monte Paschi said late Friday that it will tap investors for the third time in two years by selling up to 5 billion euros ($5.6 billion) of stock and dispose of most of its bad loans.
Here are some of the highlights of the bank’s history — from pawnshops to going public and derivatives bets gone wrong….
Monte Paschi’s 544-Year Journey From Farm Lending to Scandals
