Sept 24 - Monte dei Paschi di Siena, Italy's third-biggest lender, is set to approve a drastic restructuring plan aimed at winning the European Union's green light for a 4.1 billion euro state bailout and averting nationalisation.
4.1 billion euro's is today's daily digit -- the amount Monte Dei Paschi wants to raise in bailout bonds from the state. To avoid nationalistation the worlds oldest bank is drafting up a drastic restructuring plan. To meet EU standards it must boost capital by 2 and a half billion euros next year -- more than double what was orginally estimated by managers. If Monte Paschi can't raise the funds on the markets, EU officials say the government should step in by converting previous state loans to the bank, into equity...effectively taking it over. The shake up will see MORE job losses, branch closures and salary cuts of top tier management. The bank - Italy's third biggest - is already cutting over THOUSANDS of jobs and shutting HUNDREDS of branches. And it's future is far from certain. It's also facing legal action by Japan's Nomura bank over risky derivatives trades in 2009. The bank's former top managers could end up in the dock. Prosecutors allege they hid the true nature of the trades with Nomura.