The Italian government took control of Banca Monte dei Paschi di Siena on Tuesday, injecting €5.4bn ($6.1bn) into the troubled lender as part of a broad plan to bring one of Europe’s weakest banks back to health.
The state recapitalisation is the centerpiece of a deep overhaul of Monte dei Paschi, Italy’s fourth-largest lender, that will also include the transfer of the bank’s €28.6bn in bad loans to a special vehicle, a cap on remuneration of its top executives and deep cuts in personnel.
