Montepaschi shareholders seek answers on losses

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Associated Press

Posted on January 25, 2013 at 3:31 AM

Updated Friday, Jan 25 at 3:36 AM

MILAN (AP) — Shareholders in embattled Italian bank Monte dei Paschi di Siena were lining up to question managers about a scandal involving potential trading losses that had reportedly been concealed.

The world's oldest running bank convened shareholders Friday in Siena to approve capital increases as a condition to receive up to €3.9 billion ($5.22 billion) in state aid.

The scandal over the trades caused shares to plunge this week and became a flashpoint in the campaign for national elections.

Chairman Alessandro Profumo told the gathering it was too early to provide details of three complex financial transactions — one reportedly resulting in a loss of €200 million. The bank says an internal inquiry should be presented in mid-February.

After three days of declines, shares in the bank recovered 8.6 percent to €0.25.

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