Monte dei Paschi shares suspended after Italian bank fails EU stress test

 
Catherine Neilan
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Monte dei Paschi: Shares were suspended this morning after they fell 17.55 per cent (Source: Getty).
Shares of Italy's third largest bank Monte dei Paschi di Siena were suspended this morning, after plummeting on the back of the news it had failed the EU-wide stress test.
Monte dei Paschi's share price fell around 15 per cent this morning before shares were suspended.
This is the second time in a month authorities have had to intervene within trading in the troubled bank. Two weeks ago short selling was banned for a single day after its share price fell more than 14 per cent to the lowest level since it went public in 1999.
The test found that the bank - the world's oldest - had a €2.1bn funding shortfall, meaning it could now seek a merger or takeover. It has reportedly already received bids, and has reportedly hired UBS and Citigroup to advise.
In total 25 banks failed the test, but all the UK banks tested have passed.
The aim of the tests was to assess the resilience of EU banks to adverse economic developments and determine whether they could withstand another financial crisis.

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