ECB OKs MPS capital increase (2)

(ANSA) - Milan, July 29 - 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.