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The world’s oldest lender, the 500 year-old Monte dei Paschi di Siena, is at the centre of Italy's banking headache. (Photo: Michelle Lee)

Italy scrambles to save world's oldest bank

Italy is planning to swell its share in the ailing Monte dei Paschi di Siena bank, after prime minister Matteo Renzi's resignation scared off private investors from a planned rescue scheme.

The government already owns 4 percent in the bank, making it the largest single shareholder. It wants to increase that stake to 40 percent, which would give it controlling power over shareholder meetings.

The Tuscan bank must shore up its balance sheets with €5 billion by the end of December....

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