Monte Paschi’s Fatal Sin Brings Nationalization for Oldest Bank

On the afternoon of Dec. 9, Marco Morelli, chief executive officer of Banca Monte dei Paschi di Siena SpA, was preparing for a board meeting in the lender’s Belle Epoque-era offices in Milan when the news hit: the European Central Bank had rejected his bid for more time to raise the 5 billion euros needed to stay afloat. The gathered executives and their advisers from JPMorgan Chase & Co.

Monte Paschi to Start Share Sale in Effort to Avert State Rescue

Banca Monte dei Paschi di Siena SpA will begin taking orders for shares Monday as it aims to complete raising 5 billion euros by the end of the year to avoid a rescue by the Italian government. Monte Paschi will sell stock to institutional investors through Thursday, while the offer for retail investors will end on Wednesday, the Siena, Italy-based bank said in a statement Sunday.