MILAN (Reuters) - The situation at Italy’s Banca Monte dei Paschi di Siena will not cause any “systemic damage” to the banking sector, the head of Italian bank UniCredit said.
“The situation seems to be under control,” Chief Executive Federico Ghizzoni said on the sidelines of a conference on Friday.
“There is public support, the chairman and the chief executive are working very well to relaunch the bank and therefore it will not cause any systemic damage,” he said.
Italy’s third biggest bank Monte dei Paschi, which is already seeking a 3.9 billion euro ($5.2 billion) government bailout, this week revealed derivatives and structured finance trades that could cost it as much as 720 million euros.
Reporting by Gianluca Semeraro; writing by Francesca Landini; editing by Antonella Ciancio