Monti defends Draghi over Monte dei Paschi oversight

01/25/2013 | Reuters · Financial Times (tiered subscription model)

Italian Prime Minister Mario Monti is defending European Central Bank President Mario Draghi over charges that when the latter was governor of the Bank of Italy, lax oversight permitted disastrous losses to occur at Banca Monte dei Paschi di Siena. Monti denies that there were oversight issues. Meanwhile, Monte dei Paschi says it is well capitalised and is being used as a pawn in Italy's upcoming election. "The board ... is bewildered for how superficially the issue of recapitalisation of the bank is being treated," according to the bank. "The situation is completely under control."

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