Italian banking system sees first major test of European bail-in regime
Italy’s prime minister calls for relaxation of rules on state aid to banks
Shares in Italy's third-largest commercial bank fell to their lowest-ever level today (July 5), following the leaking of a letter from the European Central Bank (ECB) calling on it to reduce its stock of bad loans.
The news came as the Italian government failed to reach agreement with European institutions on the provision of aid to the country's financial sector.
Shares in Banca Monte dei Paschi di Siena (MPS) reached a record low of €0.297 ($0.329), while its bonds also slumped. The ECB letter
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