Italy’s lower house of parliament on Wednesday approved a government request for a loan of up to €20 billion to rescue the country’s struggling lenders, including Banca Monte dei Paschi di Siena SpA , according to Reuters. The decision comes as BMPS, the world’s oldest lender, is scrambling to push through a recapitalization plan to keep it afloat. The bank has estimated it will run out of liquidity in four months, rather than the 11 months earlier estimated, Reuters reported, citing bank documents. That sent the shares down as much as 19% to a record low. The stock trimmed its losses to 4.9% after news that the lower house had approved the bailout request. The €20 billion rescue fund will be used to prop up other Italian banks as well, according to Reuters.
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