Scandal at world's oldest bank

By hiding losses of hundreds of millions of euros, the 540-year-old Monte dei Paschi di Siena has threatened to trip up the leading Democratic Party – to Silvio Berlusconi's benefit.

A scandal engulfing the world’s oldest bank has emerged as a potential game changer in Italy’s national election, threatening to drag down the leading party in the polls and give a critical boost to Silvio Berlusconi’s bid to regain office.

Monte dei Paschi di Siena was founded in 1472, 20 years before Columbus discovered America, but its centuries-old reputation has been severely tarnished by a still-unraveling scandal over derivatives deals worth hundreds of millions of euros and hidden by the bank until brought to light in recent days.

The derivative deals could cost the 540-year-old bank losses of up to 720 million euros ($970 million). What makes it so politically damaging is the banks ties to the center-left Democratic Party. Read more >>