MontePaschi raised aid demand due to trade loss

Associated Press

MILAN (AP) — The CEO of Monte dei Paschi di Siena says the embattled bank increased its request for government aid by €500 million ($672 million) after incoming managers found a document found in a company safe in late October indicating trading losses.

Fabrizio Viola says the document tied together two complex financial trades that had until then seemed unrelated. He says neither had been accounted for on the books.

In a briefing to reporters on Monday, he says it does not appear the document was hidden on purpose, as suggested by the Bank of Italy last week.

Montipaschi is investigating three complex loss-making financial transactions that have become fodder for the campaign for next month's national elections. It is expected to report the results by mid-February, including any expected impact on earnings.

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