Italy's Monte dei Paschi Is in More Trouble Than We Initially Thought

The European Central Bank said troubled Italian bank Monte dei Paschi needs 8.8 billion euros in fresh capital.
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The European Central Bank said troubled Italian bank Monte dei Paschi (BMDPY) needs 8.8 billion euros in fresh capital, compared to a previously reported 5 billion euros. "The last thing in the world that Italy or the ECB needs right now is a banking crisis," said Real Money contributor Steve Blitz. Last week, the Italian government approved a 20 billion euro bailout for the bank, along with two other struggling Italian banks, using the 5 billion euro figure. According to Blitz, officials will do what's necessary to keep the banks afloat, even if the new ECB calculations mean the 20 billion euro bailout isn't sufficient enough.