ROME – The Italian government is bailing out Monte dei Paschi di Siena after Italy's third-largest lender failed to raise the 5 billion euros ($5.2 billion) needed to stay afloat.
The government passed the bailout decree early Friday. Parliament has approved a 20 billion-euro fund to guarantee the stability of Italian banks, with MPS the most vulnerable.
Shares in Monte dei Paschi were suspended Friday on the Milan stock exchange.
MPS said late Thursday it hadn't secured a key anchor investor to pump money in, and that its efforts to swap debt for equity had netted only 2.45 billion euros, setting the stage for the government bailout.