Italian Banks Flirt With Disaster Again as Renzi Teeters
- Markets have priced in impact of a ‘No’ vote in referendum
- Tottering Monte Paschi the wild card as it begins equity sale
What's at Stake in Italy's Referendum?
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They’re burdened with a mountain of bad loans. Their stocks have cratered. And they have to operate in an economy prone to recession and political upheaval.
Signs have been mounting for months that Italy’s weakest lenders, and in particular Banca Monte dei Paschi di Siena SpA, were sliding toward the precipice, threatening to reignite a broader crisis.