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Summary The world's oldest bank to reduce its workforce by 4,600 people by 2015.
Italys Banca Monte dei Paschi di Siena, the worlds oldest bank, said Wednesday it will reduce its workforce by 4,600 people by 2015, as the struggling lender accepted a state bailout loan.BMPS said it will borrow roughly 1.5 billion euros ($1.87 billion) from the government in order to pay off debt and shore up its capital, and said in its strategic plan for 2012-2015 that it would reduce posts and sell assets.The Tuscan bank said it would carry out the necessary procedures to obtain a bailout loan estimated at around 1.5 billion euros by the end of the year.The government had offered the struggling bank up to two billion euros in aid in what it described Tuesday as urgent measures to raise BMPSs capital funds as Italy struggles to stave off debt crisis contagion.BMPS will issue bonds reserved for the state for a total of 3.4 billion euros to raise the 1.5 billion euros offered in this bailout, and pay off a government loan taken in 2009 as the financial crisis bit.The bank has pledged to pay back three billion euros by 2015. It also said it plans to close 400 branches.The bank, which posted a 4.69 billion euro loss in 2011, has forecast a 630 million euros net profit in 2015.
