Milan — The fate of key Italian banks was up in the air Monday as investors feared that Prime Minister Matteo Renzi’s resignation will threaten their recapitalisation plans. Concern focused on Italy’s third-biggest bank, Monte dei Paschi di Siena (BMPS), which analysts said was one of the country’s most vulnerable large lenders. Banking stocks went through a roller coaster ride on the Milan bourse following Italian voters’ rejection of constitutional reform that prompted Renzi’s announcement that he would quit. They opened sharply lower on Monday, and then recovered, before plunging again, with UniCredit down 3.2%, Banca popolare di Milano 2.4%, Banco popolare 2% and Mediobanca 1.3% approaching midsession. BMPS, which is the world’s oldest bank, has lost 84% of its market capitalisation since the start of the year. It also emerged as the worst performer from European Banking Authority (EBA) stress tests in July. To ensure its survival, the bank has launched a plan involving the spin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.