Italian Bank Loses Money, Deposits, Short Sellers


If Banca Monte dei Paschi di Siena has any more really bad news to announce, now might be a good time to get it out.

In the wake of its last two rounds of really bad news, the latest that its deposits had fallen by "some billions," Italian regulators have put a stop to short-selling MPS stock until Thursday. They also had to stop trading in the bank outright a few times today, because, well:

"The deposit flight is penalizing the stock value more than the very bad results," said Vincenzo Longo, markets strategist at IG Markets. "This is the worst thing that can happen to a bank."

Italy Bans Short Selling of MPS Stock [WSJ]