Italy $20.9 billion fund sufficient for all banks under observation: Treasury source

Twenty billion euros earmarked by the Italian government would be enough to cover funding requirements at all the ailing banks currently under observation by the Treasury and the Bank of Italy, a Treasury source said on Tuesday. Rescuing its third-biggest lender, Monte dei Paschi di Siena , will likely cost Italy more than initially expected as the European Central Bank has revised the bank's capital shortfall, sources said earlier on Tuesday.