World’s oldest bank could run out of money in four months

Shares in Banca Monte dei Paschi have been suspended from trading again after the struggling lender issued a new warning over its funding woes. The bank - the oldest in the world - said on Wednesday it would run out of money within four months unless its recapitalisation efforts were successful. Its previous guidance had pointed to 11 months-worth of money. The statement sparked a 17% dip in the value of its previously flogged stock, hitting new record lows when trading was halted with shares almost 19% lower giving it a market value of just under €450m. The bank is running out of time to meet a European Central Bank (ECB) deadline of the year’s end to raise €5bn from investors through the sale of new shares. A request for a time extension from the ECB was rejected almost two weeks ago initiating a stock suspension then and raising fears it would have to go cap in hand to the Italian government for a rescue to avoid it being wound up.

Business