The European Central Bank (ECB) could soon start planning an exit from its unprecedented stimulus programme, one of its executive board members said yesterday (24 January), in a rare public discussion about ending its asset buying scheme.
The Italian government approved a decree early on Friday (23 December) that will open the way for the rescue of Monte dei Paschi di Siena after the world's oldest bank failed to win backing from investors for a vital capital increase.
Italy's government is ready to pump €15 billion into Monte dei Paschi di Siena and other ailing banks, sources said, as the country's third-largest lender pushes ahead with a private rescue plan that is widely expected to fail.
Italian Prime Minister Matteo Renzi resigned yesterday (7 December) after a bruising referendum loss at the weekend, with most parliamentary factions pushing for an early election in a few months' time.
JPMorgan Chase wanted to buy troubled Italian rival BMPS but abandoned the plan over fears it would be vetoed by US regulators and opposed in Italy, people close to the deal told AFP on Wednesday (3 July).
European Union authorities are making contingency plans for the possible winding down of Banca Monte dei Paschi if the Italian lender has a poor reading in stress tests this week and no private or public support is available, an EU official said.