The head of the European Central Bank Mario Draghi met Italy's Economy Minister Vittorio Grilli on Monday, a source said on Tuesday, as a scandal at Italy's No. 3 bank Monte dei Paschi di Siena deepens.
"Draghi was already in Milan. There was a meeting with Grilli at the office of the economy ministry in Milan," the source with knowledge of the meeting said.
"It is likely that they also talked about the hearing that Grilli will hold in parliament today about Monte Paschi," the source added.
Several newspapers including the FT said on Tuesday Draghi had met Grilli to discuss mounting problems at Monte Paschi.
Monte Paschi has run into deep trouble since its 9-billion-euro cash purchase of Banca Antonveneta in 2007 and is embroiled in a scandal involving derivatives-related trades.
Grilli will address a hearing in parliament on Tuesday at 2:00 p.m. British time.
(Reporting By Stefano Bernabei, editing by Silvia Aloisi and Paola Arosio)