Today’s Italian referendum news brings back talk of Banca Monte dei Paschi di Siena SpA(here). I have found their derivative involvements and sequential bailouts fascinating, perhaps because they claim to be the world’s oldest bank! The headline is sensational, the information on what they did continues to remain sparse. Although a cop-out to link to my own posts (from 2013 no less, click here), it is worth a mention since one of the derivatives trades that got them into trouble appears to have been an interest-rate swap, which we are talking about in class. Also pertains to our discussions about never-ending bailouts, restructing and defaults. Plus, I like the way I wrote in those days…..