At the root of Monte Paschi‘s problems is the acquisition in 2007 of smaller rival Antonveneta for a massive 9 billion euros in cash, stretching its finances to the limit just months before the global financial crisis hit.

Siena prosecutors are investigating why the bank paid such an inflated price for Antonveneta shortly after Spain‘s Santander had purchased it from ABN Amro for just 6.6 bln euros.