Gavin's Feed
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.

Jan 10, 2013

Italy’s Berlusconi enters lion’s den to close gap ahead of vote

ROME (Reuters) – Seeking a fifth term as Italian prime minister, Silvio Berlusconi took his election campaign into risky and unfamiliar territory on Thursday when he appeared on a television program run by some of his fiercest critics.

Desperate to close a wide gap with the center-left less than seven weeks before the vote, Berlusconi surprised many observers when he said he would attend a talk show hosted by a journalist who has made a career out of criticizing him.

Jan 8, 2013

Italy jobless records put heat on Monti in poll race

ROME (Reuters) – Italy’s jobless rate remained at a record high in November while youth unemployment jumped to a new peak above 37 percent, data showed on Tuesday.

Italy has been in a deep recession since the middle of 2011 and unemployment has risen steadily as businesses clamp down on staffing levels to cope with crumbling domestic demand.

Jan 2, 2013

Six months on, Monti’s labour reform has changed little

ROME (Reuters) – Overhauling Italy’s rigid labour rules was supposed to be Mario Monti’s flagship reform.

It required drawn out, often heated bargaining with unions, employers and political parties. Yet six months after their approval the measures seem to be having little effect on hiring, firing or the labour market in general.