Italy bans short selling on Monte dei Paschi as shares slump 20%

LONDON (MarketWatch) -- Italian market watchdog Consob on Monday imposed a temporary short-selling ban on shares of Banca Monte dei Paschi di Siena Spa BMPS, -20.30% as they sank 20% on the Milan stock exchange. The slide came after the lender was identified as one of 25 eurozone banks that failed the European Central Bank's stress tests, facing a capital shortfall of 2.1 billion euros ($2.66 billion). The shortfall marks the biggest capital gap of the lenders examined in the tests. Consob said the short-selling ban in Monte dei Paschi shares will be in place Monday and Tuesday.

Time (CEST)Banca Monte dei Paschi di Siena S.p.A