MILAN, June 19 (Reuters) – Italy’s third-largest bank, Monte
dei Paschi di Siena, must quickly plug a capital
shortfall to fend off the threat of a downgrade by rating agency
Standard & Poor’s, which dragged shares close to record lows on
The bank, the world’s oldest, may have to resort to some
form of state intervention if it does not fully address by the
end of June a 3.2 billion euro ($4.03 billion) capital shortage
stemming from its large exposure to Italian bonds, the agency
MILAN/MADRID (Reuters) – Spain called on Monday for the European Central Bank to fight financial market pressures on the euro zone, and Italy said more must be done to shore up the bloc after the Greek election result failed to ease the strain on both countries.
The cost of borrowing rose for the two big euro zone economies under fire for poor finances, widening the gap between what they would have to pay and what Germany pays.
MILAN/MADRID, June 18 (Reuters) – Any hopes Italy and Spain
may have had that the Greek election result would ease pressure
on their own debt crises were dashed early on Monday when
financial markets reacted as if nothing had changed.
The cost of borrowing rose for both countries, the two big
euro zone economies under fire for poor finances, widening the
gap between what they have to pay and what Germany pays.