Italy prepares to bail out world’s oldest lender Monte dei Paschi di Siena


Hugo Duncan for the Daily Mail

Troubled lender Monte dei Paschi di Siena looks set to be rescued by the Italian government as hopes of private investment evaporate.

The basket-case bank – which was founded in 1472 and is the oldest in the world – needs £4.2bn to save it from collapse as it buckles under the strain of £25.5bn of toxic debt.

But it is understood that investors who had been lined up to provide a lifeline – including Qatar’s cash-rich sovereign wealth fund – have got cold feet following the resignation of prime minister Matteo Renzi in the wake of the weekend’s crushing referendum defeat.

The Italian government is now preparing a state bailout for Monte dei Paschi to prevent the lender failing and triggering a full-blown banking…


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