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Banca Monte dei Paschi di Siena needs way more money than previously thought

Staff Writer | December 27, 2016
The European Central Bank (ECB)sees Italian lender Banca Monte dei Paschi di Siena needing about 8.8 billion euros ($9.2 billion) of capital to bolster its balance sheet after liquidity deteriorated this month.
Banca Monte Paschi
Banking   The results of a 2016 stress test
The calculation is based on the results of a 2016 stress test, the Italian bank said, citing two letters from the ECB that it received via Italy’s Finance Ministry.

While the ECB saw worsening liquidity at Monte Paschi between November 30 and December 21, it still considers the Italian bank to be solvent. The lender is seeking additional information on the central bank’s calculations.

On Friday, the Italian government said it will plow as much as 20 billion euros into Monte Paschi and other banks after the lender failed in its plan to raise about 5 billion euros from the market.