Having collapsed 99.7% from its July 2007 highs at EUR93, Banca Monte dei Paschi Siena – Italy’s 3rd largest bank – is in dire straits. And in confirmation that the fecal matter is about to strike a rotating object, Italian regulators just ‘temporarily’ banned short-selling of BMPS stock. Of course, with various other derivatives available to ‘hedgers’ or those dastardly speculators (note – 5Y Sub CDS at 1633bps, record highs), the pressure is anything but lifted. In fact, this likely puts more pressure on its peers.