The Italian government is bailing out Monte dei Paschi di Siena after Italy's third-largest bank failed to raise the €5 billion needed to stay afloat.
The government passed the bailout decree early today. Parliament has approved a €20 billion fund to guarantee the stability of Italian banks, with MPS the most vulnerable.
Shares in Monte dei Paschi were suspended today on the Milan stock exchange.
MPS said late yesterday that it had not secured a key anchor investor to pump money in, and that efforts to swap debt for equity had netted only €2.45 billion.