Monte Paschi chairman warns against delaying capital hike

A delay in a 3 billion euro ($4.12 billion) capital increase for troubled Italian lender Monte dei Paschi di Siena (BMPS.MI) past January would cause great uncertainty and could force the bank to be nationalized, its chairman said on Tuesday. “As of today, we are sure of being able to do it,” Alessandro Profumo told reporters, adding however that if the capital hike did not go through, “we enter a zone of great uncertainty”. “It could be that if we are unable to do it, the bank would then be nationalized,” he said. The bank’s management and its top investor have disagreed over the timing of the capital increase, with the board voting against a proposal from Fondazione Monte dei Paschi di Siena to delay it to May from January.

    

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