Europe

Teetering Italian bank looks for investors

A newspaper headline reads in Italian "Renzi goes home" following the result of Sunday's constitutional referendum, at a newsstand in Milan, Italy, Monday, Dec. 5, 2016. Italian voters dealt Premier Renzi a resounding rebuke early Monday by rejecting his proposed constitutional reforms, plunging Europe's fourth-largest economy into political and economic uncertainty. (AP Photo/Antonio Calanni)

A newspaper headline reads in Italian "Renzi goes home" following the result of Sunday's constitutional referendum, at a newsstand in Milan, Italy, Monday, Dec. 5, 2016. Italian voters dealt Premier Renzi a resounding rebuke early Monday by rejecting his proposed constitutional reforms, plunging Europe's fourth-largest economy into political and economic uncertainty. (AP Photo/Antonio Calanni)  (The Associated Press)

Shares in Italy's most troubled bank, Monte dei Paschi di Siena, are down again amid rising concerns about its ability to remain solvent.

Shares were down 3 percent Tuesday though the bank said it had achieved one part of a turnaround program. Bondholders agreed to swap some 1.02 billion euros (1.09 billion dollars) in subordinated shares.

The future of Italy's third largest-lender is in doubt amid political turmoil, with Premier Matteo Renzi poised to resign after a stunning rebuke by voters to his constitutional reforms.

The timing of Italy's political crisis couldn't be worse for Monte dei Paschi, which is hoping to raise money through a stock offering as part of its restructuring.

The share swap announced Tuesday is part of that turnaround plan.