Shares in troubled Italian bank dive on government plans

MILAN - Shares in troubled Italian bank Monte dei Paschi di Siena slumped after it emerged the populist parties negotiating to form a new government intend to keep the bank under state control.

Shares in Monte dei Paschi slid more than 4.3 per cent to 2.79 euros ($3.30) on Friday, a day after shedding nearly 9 per cent.

Italy's economy minister, Pier Carlo Padoan, said in a statement that the intentions of the leaders of the right-wing League and anti-establishment 5-Star Movement "have immediately created a crisis of trust" in the bank's shares. He called it "a serious matter that jeopardizes the investment made with public resources."

Monte dei Paschi is 68-per cent government owned after last year's bailout. Under European rules, state support can only be temporary.


jonesie
JONESIE: Why embezzling money seems all the rage
  OPINION With all due respect to Walter White, when people break bad, they don’t make meth. It used to be pot. Court lists and police press releases were loaded with people who reached their sixties and sev

Top News