Italian bank shares took yet another beating Monday, crushing hopes that solutions to the U.S. public debt ceiling and the euro-zone's sovereign debt crisis will create a floor and trigger a rally for a sector that has performed worse than any other European asset class for a month now.

Intesa Sanpaolo, Italy's largest bank and according to most analysts the best, led Monday's slide, falling more than 8% and being temporarily suspended. Other banks such as Banco Popolare and Banca Monte dei Paschi di Siena posted sharp falls...