The European Central Bank on
Friday approved Monte dei Paschi di Siena (MPS) lender's
recapitalization plan.
It calls for a five-billion-euro capital increase and the
securitization of 10 billion euros' worth of non-performing
loans (NPLs) with help from Italy's private Atlante fund that
was set up by the financial industry earlier this year to shore
up banks burdened by toxic loans without breaking EU rules
against public aid.
An alternative plan involving an offer by private investors
including Swiss banking giant UBS and former Intesa Sanpaolo
chief Corrado Passera was headed off before it could be made
formal, two financial sources told ANSA earlier in the day.
Also on Friday, CONSOB stock market watchdog told ANSA it
was scrutinizing MPS share movements after they jumped 7% in
early trading on news of the alternative rescue plan.
MPS closed up 6.2% at 0.3 euros a share.
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