This week Italy managed a bank run; next week?

EPA/CARLO FERRARO

A file photo dated 28 March 2012 showing an exterior view of the Palazzo Salimbeni, site of Monte dei Paschi bank, in Siena, Italy. The board of Monte dei Paschi di Siena (MPS)

If this is a banking sector issue, what will it take for it to go away?


A "run" on Italy’s third largest bank begun on Wednesday; by Thursday, the Prime Minister and the European Central Bank were trying to restore trust, in the bank, and the system at large, with some success.

Prime Minister Renzi said the country has a robust banking system and the Milan Stock Exchange woke up to a 6,9% rise across the sector.

On Wednesday, depositors withdrew their money from Banka Monte dei Paschi de Siena SpA (BMPS), generating images that resembled Greece in the summer o...


This story is part of New Europe's Premium content.

To Read the Full Story, Subscribe or Sign In from the ↑ Top of the Page ↑
new europe join now