MILAN, March 12 Italy's Monte dei Paschi is
"fairly serene" about a sector-wide health check by European
regulators, its chairman Alessandro Profumo said on Wednesday.
The bank earlier reported a bigger-than-expected loss of
1.44 billion euros after heavy writedowns on bad loans.
The fall in Italian government bond yields and the closing
of the Santorini derivative trade have reduced a shortfall in
the bank's available for sale portfolio to 700 million euros
from 3.4 billion euros in 2011, Profumo said.
"There is a big difference, potentially these are all lower
capital needs," Profumo said. "From this point of view we are
The bank has 26 billion euros of Italian government bonds.
(Reporting by Silvia Aloisi, editing by Danilo Masoni)