Gavin's Feed
Jan 28, 2013

Analysis: Scandal of Italy’s Monte Paschi means questions for Draghi

ROME (Reuters) – Just as he prepares to take responsibility for regulating the banking system of the entire euro zone, Mario Draghi faces questions dating back to his leadership of the Bank of Italy over its oversight of the world’s oldest bank.

Turmoil at Italy’s third largest lender, 540-year-old Banca Monte dei Paschi di Siena, has rocked the Italian financial establishment and raised questions in the middle of an election campaign for the government and the Bank of Italy.

Jan 28, 2013

Scandal of Italy’s Monte Paschi means questions for Draghi

ROME, Jan 28 (Reuters) – Just as he prepares to take
responsibility for regulating the banking system of the entire
euro zone, Mario Draghi faces questions dating back to his
leadership of the Bank of Italy over its oversight of the
world’s oldest bank.

Turmoil at Italy’s third largest lender, 540-year-old Banca
Monte dei Paschi di Siena, has rocked the Italian financial
establishment and raised questions in the middle of an election
campaign for the government and the Bank of Italy.

Jan 28, 2013

Italy consumers glum ahead of election as wages stagnate

ROME, Jan 28 (Reuters) – Italian consumer morale fell to its
lowest level on record in January, confirming a grim public mood
ahead of a national election next month as voters feel the pain
of a long recession.

Separate data on Monday showed wages in 2012 grew at less
than half the rate of inflation, helping to explain the fall in
morale and the worst slump in consumer spending for more than
half a century.

Jan 27, 2013

Monte Paschi seeks new investor as scandal deepens

ROME/MILAN (Reuters) – Monte dei Paschi di Siena (BMPS.MI: Quote, Profile, Research, Stock Buzz) said on Sunday it was seeking a financial investor as the political storm over a derivatives scandal at the ailing bank intensified ahead of next month’s Italian election.

Italy’s third-biggest lender, which needs state loans to stay afloat, this week revealed opaque derivatives trades, conducted between 2006 and 2009, that could cost it some 720 million euros.

Jan 27, 2013

Italy central bank approves Monte Paschi bailout request

ROME/MILAN (Reuters) – Italy’s central bank on Saturday gave its approval to a request by scandal hit bank Monte dei Paschi di Siena for 3.9 billion euros ($5.3 billion) of state loans, the latest step in the battle to revive the ailing bank.

The Bank of Italy’s backing was the final stage required to free up the financial help for Italy’s third biggest lender, which this week revealed loss-making derivatives trades that could cost it about 720 million euros.

Jan 26, 2013

Bank of Italy board meets to assess Monte Paschi crisis

ROME (Reuters) – The four-member board of the Bank of Italy was meeting on Saturday to consider the position of scandal-hit bank Monte dei Paschi di Siena and decide whether to authorize its request for 3.9 billion euros ($5.3 billion) of state loans.

Italy’s third-largest bank this week revealed loss-making derivatives trades that could cost it about 720 million euros, causing heavy losses in its shares and prompting questions about how the risky deals could have been hidden from regulators.

Jan 25, 2013

Bank of Italy feels the heat over Monte Paschi scandal

ROME (Reuters) – The Bank of Italy scrambled on Friday to deflect charges that it failed to prevent risky derivatives trades by the country’s third-largest lender, which took place when ECB chief Mario Draghi headed Italy’s central bank.

The escalating scandal over Monte dei Paschi di Siena, the world’s oldest bank, has rocketed to the centre of the campaign for next month’s Italian election with concerns that the ailing bank may need to be nationalized.

Jan 24, 2013

ECB’s Draghi under fire over Monte Paschi derivatives scandal

ROME, Jan 24 (Reuters) – European Central Bank President
Mario Draghi is facing criticism over a scandal involving
loss-making derivatives trades made by troubled Italian lender
Monte dei Paschi di Siena while he was Italy’s central bank
governor.

Draghi, who will attend the World Economic Conference in
Davos on Friday, may have to field pointed questions about the
structured trades which could cost Monte Paschi at least $1
billion.

Jan 14, 2013

Italy’s Berlusconi closing gap ahead of vote

ROME (Reuters) – Silvio Berlusconi’s centre-right coalition is making rapid gains ahead of next month’s elections, the latest polls suggest, increasing the possibility that even if the centre-left wins as expected it may not be able to form a stable Italian government.

A poll by the Emg agency for television station La7 showed centre-left’s lead over the centre-right shrinking by 5.5 points from a month earlier to 9.5 points, La7 director Enrico Mentana said on Monday.

Jan 14, 2013

Italy output drop shows economy in mire as poll looms

ROME, Jan 14 (Reuters) – Italian industrial output fell a
bigger-than-expected 1.0 percent in November, suggesting the
economy remains deep in recession as the country braces for a
national election next month.

The latest piece of bleak data will provide further
ammunition to critics of outgoing Prime Minister Mario Monti,
who is bidding for a second term in office at the Feb. 24-25
ballot.