Italy’s third-largest and the world’ oldest bank, Monte dei Paschi de Siena, is on the point of collapse unless it receives state support. Its failure could spark a banking crisis in Europe, but EU rules forbid bank bailouts using public funds. Alarm bells have gone off ahead of the results of European stress tests, due to be released at the end of July that will reportedly reveal Italian capital needs. Because of the concerns investors are staying away from the recapitalization of the country’s banks. According to the IMF, Banca Monte dei Paschi di Siena has over $400 billion (€360 billion) of non-performing loans. Experts expect the bank to become the worst performer with the risk of its failure likely to shake the Italian banking system. The bank has already been bailed out twice, but is likely to need a third multibillion euro cash injection from the government. EU regulations ban member states from using public money to support failed banks. If Italy follows the rules imposed by Brussels, several national banks will become insolvent. This could cause economic turmoil across the world if this bank fails, and lets not forget that Deutsche Bank in Germany is also on the verge of collapse. By European Union law the money of the public cannot be used to bailout banking institutions, so we could probably see one of two things happening. Either the EU allows a bailout of these banks without the public noticing, or we will witness the collapse of two major banks in Europe which would lead to an economic crisis around the world. Since their is a law in place that prevents the EU from doing banker bailouts, what we should witness is these banks collapsing and ending leading to economic chaos in the coming days or weeks. Then again it's two major banks that are failing, and there is a chance the elites will not let this happen.