Paschi Seeks State Aid as Italy Sets $21 Billion for Banks

Italy’s government is set to rescue Banca Monte dei Paschi di Siena SpA after the world’s oldest lender failed to raise 5 billion euros from the market, in what will be the country’s biggest bank nationalization since the 1930s. Italy will plow as much as 20 billion euros into the country’s banks providing both emergency liquidity guarantees and capital injections, as more lenders may seek lifelines soon.

Paschi Drops Private Fundraising, Paving Way for State Aid

Banca Monte dei Paschi di Siena SpA, the world’s oldest lender, abandoned plans to raise 5 billion euros from the market, making a state rescue likely. Monte Paschi failed to lure sufficient demand from investors in a share sale that ended Thursday, the Siena-based bank said in a statement after the market closed.