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Monte Paschi executives in talks with ECB over capital plan 

January 15, 2015
Stefano Bernabei, Reuters

Executives from Monte dei Paschi di Siena, identified as the weakest bank in a Europe-wide review, will discuss the lender's plan to boost its finances with the European Central Bank on Thursday, a source with knowledge of the matter said.

Monte dei Paschi Chairman Alessandro Profumo and CEO Fabrizio Viola hope the ECB will lower capital demands for the Tuscan lender if it books around 3 billion euros ($3.5 billion) in additional writedowns for bad loans in the fourth quarter of 2014.

Monte dei Paschi said last week the ECB had asked it to raise its core capital level to 14.3 percent as part of new, tougher requirements for riskier lenders to bolster their financial strength. That compares with a level of 12.8 percent the bank had at the end of September 2014.

Read More: Reuters

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