Paschi Strips CEO Lovaglio of Power After He Defied Board

Banca Monte dei Paschi di Siena SpA defrocked Chief Executive Officer Luigi Lovaglio in an effort to end a bruising period of leadership turmoil.

The decision followed an attempt by Lovaglio to seek a new term, which formally ends next month, in defiance of the bank’s decision to let it run out. Lovaglio sought to bypass that by running as a candidate for one of the lender’s shareholders instead.