The Italian government has approved a €20 billion bailout fund, as Monti dei Paschi fail to raise desperately needed funds from private investors. <br /><br /> Although the fund will be available for all banks in need, it is the fate of the Monti dei Paschi bank that has triggered this decision. <br /><br /> Prime Minister Paolo Gentiloni said at a press conference that: “(There are) two fundamental objectives for us. The first is to protect savings as far as possible. The other is to make our banking system stronger and more solid”. <br /><br /> The oldest surviving bank in the world aimed to raise €5 billion from private investors this week, but came up short. <br /><br /> The bailout process has been coordinated alongside the EU, according to Italian ministers. <br /><br /> The bank will not trade on the stock market today, in an effort to avoid dangerous speculation. <br /><br /> The process is divided into two parts: State intervention to guarantee liquidity, and a second intervention to reinforce its equity position.<br />
