Economy Monte dei Paschi shares fall sharply, suspended from trading

Monte dei Paschi shares fall sharply, suspended from trading

A logo of Monte dei Paschi di Siena bank is seen on the ground in downtown Siena, Italy.
A logo of Monte dei Paschi di Siena bank is seen on the ground in downtown Siena, Italy.

Shares in Monte dei Paschi di Siena (BMPS.MI) fell 5.3 percent on Monday and were suspended from trading as Italian banking stocks came under renewed pressure ahead of a Dec. 4 constitutional referendum that could unseat the government.

Markets worry political instability in Italy would make it hard for Monte dei Paschi to complete a 5 billion euro ($5.3 billion) recapitalisation, needed to stave off the risk of being wound down, with a knock-on effect on other lenders.

Monte dei Paschi CEO Marco Morelli is expected to update the board on the plan’s progress at a meeting due to start at around midday on Monday. ($1 = 0.9406 euros)

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