CEO of troubled Italian bank Monte dei Paschi resigns

MarketsAssociated Press

The chief executive of Italy's troubled Monte dei Paschi di Siena has resigned after the bank was the worst performer in the recent stress test of EU banks.

The Tuscan bank announced the departure of Fabrizio Viola in a statement after a board meeting late Thursday. It said the search for a replacement is under way and Viola will remain in place until the successor is named.

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The world's oldest-running bank, Monte dei Paschi di Siena is among the most troubled of Italy's banks, which are struggling with 360 billion euros ($400 billion) in soured loans.

After the EU stress test, Viola had announced a 5 billion euro capital increase from private sources.