Ailing Italian bank Monte dei Paschi di Siena on Thursday formally approved a last-ditch attempt to raise 5 billion euros by year end.
European markets closed higher on Tuesday as investors focused on the upcoming meeting of the Federal Reserve.
Italy's prime minister, Paolo Gentiloni, said his government would be ready to take action to support its banks.
It’s that time of the year for financial journalists: We are being inundated with lengthy outlook reports for the coming year.
European stocks closed lower Monday amid continued political uncertainty in Italy while investors await another rate decision from the Fed.
Monte dei Paschi is racing against time to raise 5 billion euros by the end of the month.
European stocks closed higher on Friday after the ECB announced an extension of its massive bond-buying program.
The ECB won't give extra time to the embattled Italian bank Monte dei Paschi to raise money to finance its operations, sources told CNBC.
Shares in Europe bounced back and closed higher on Thursday after the ECB announced further monetary stimulus.
ECB President Mario Draghi said he is "confident" that the Italian government knows what to do to address the country's banking sector.
The board of Monte dei Paschi asked the ECB for more time to move ahead with a $5.4 billion recapitalization, according to the FT.
Monte dei Paschi isn't the only Italian bank with bad debts, says Dan Scott at Credit Suisse.
Renzi said he would quit following his crushing defeat in Sunday's referendum.
European stocks closed higher on Wednesday afternoon as investors shifted their focus to the European Central Bank's (ECB) upcoming meeting.
It's the oldest world lender and it has been making headlines amid concerns it doesn't have the financial capacity to cover its bad debts.
European authorities could punish Italy for a state bailout of Monte dei Paschi but such a decision would prolong the ongoing crisis.
U.S. equities rose, as a post-election rally continued, while investors digested data and braced for two key central bank meetings.
European bourses closed higher Tuesday as concerns over political instability eased and investors focused on the upcoming ECB meeting.
U.S. stock index futures pointed to a flat-to-higher open on Tuesday after notching record highs in the previous session.
The political upheaval has made it more difficult to secure the investment from Qatar, the FT reports.