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Mar 5, 2013

Banco Popolare clean-up lifts shares despite wider loss

MILAN, March 5 (Reuters) – Shares in Italy’s Banco Popolare
rose slightly on Tuesday as the market welcomed an
increase in loan loss provisions as a clean-up of its balance
sheet.

Banco Popolare, Italy’s fourth-largest bank by number of
branches, warned late on Monday it expected a net loss for 2012
of around 330 million euros ($429 million) after it raised
provisions on non-performing loans in the fourth quarter to 650
million euros.

Feb 25, 2013

Messy election outcome to weigh on Italian markets

MILAN, Feb 26 (Reuters) – Italian bonds and shares were set
to fall on Tuesday as a messy election result fuelled fears of a
hung parliament and an ungovernable country.

A huge protest vote on Monday by Italians enraged by
economic hardship and political corruption pushed the country
towards deadlock, with no coalition likely to be strong enough
to form a government.

Feb 20, 2013

Consumer group says Monte Paschi may face more losses

MILAN/ROME, Feb 20 (Reuters) – Monte dei Paschi
could face an extra loss of up to 1.5 billion euros ($2 billion)
because of the way it accounted for derivatives trades,
according to a leading consumer group challenging the bank’s
state bailout.

The derivatives trades, carried out from 2008-09, are at the
centre of an investigation into alleged fraud and corruption at
the world’s oldest bank. The scandal has triggered a political
storm ahead of an election on Feb. 24-25 because of the lender’s
close ties to the centre-left Democratic party (PD).

Feb 13, 2013

Insight – Monte Paschi hiked Antonveneta bid to see off BNP

MILAN/LONDON (Reuters) – Monte dei Paschi pumped up its bid for Antonveneta to trump a rival offer from France’s BNP Paribas, paving the way for an eventual state bailout of the world’s oldest bank and a political furor in Italy over its finances.

The new disclosure comes in a report by Italy’s financial police and is based on statements from an adviser to the seller, Spain’s Santander. Reviewed by Reuters, the document reveals for the first time why Monte dei Paschi may have offered such a high bid for its smaller Padua-based rival and why it did not conduct any due diligence before agreeing the deal.

Feb 13, 2013

Monte Paschi hiked Antonveneta bid to see off BNP

MILAN/LONDON, Feb 13 (Reuters) – Monte dei Paschi
pumped up its bid for Antonveneta to trump a rival offer from
France’s BNP Paribas, paving the way for an eventual
state bailout of the world’s oldest bank and a political furor
in Italy over its finances.

The new disclosure comes in a report by Italy’s financial
police and is based on statements from an adviser to the seller,
Spain’s Santander. Reviewed by Reuters, the document
reveals for the first time why Monte dei Paschi may have offered
such a high bid for its smaller Padua-based rival and why it did
not conduct any due diligence before agreeing the deal.

Feb 8, 2013

Monte Paschi struck secret deal over Antonveneta -police

SIENA, Italy, Feb 8 (Reuters) – Monte dei Paschi struck a
last-minute, secret deal with Bank of New York that allowed the
Italian bank to mislead authorities and smoothed through its
acquisition of rival Antonveneta, according to a report by the
financial police in Italy.

A deepening fraud and bribery scandal at the country’s third
largest bank has caused a political outcry ahead of a
parliamentary election on Feb. 24-25, with the Bank of Italy
under fire over suspected financial irregularities at the Tuscan
institution.

Feb 7, 2013

Monte Paschi says no more derivatives losses

SIENA, Italy (Reuters) – Italy’s Monte dei Paschi (BMPS.MI: Quote, Profile, Research, Stock Buzz) said there were no more derivatives losses beyond the 730 million euros ($988 million) it has disclosed, which have rattled financial markets and become a campaign issue ahead of parliamentary elections.

The derivative trades are at the heart of a fraud probe into former management of the world’s oldest bank, raising doubts about the effectiveness of banking supervisors, including European Central Bank chief Mario Draghi, who was Bank of Italy governor from 2006 to 2011, and the role of politicians, who agreed a state bailout for the lender.

Feb 6, 2013

Monte Paschi puts derivatives loss at 730 million euros

SIENA, Italy (Reuters) – Monte dei Paschi di Siena, Italy’s third biggest lender, said on Wednesday losses linked to three problematic derivative trades totalled 730 million euros ($988.3 million) as it sought to draw a line under a scandal over risky financial transactions.

After a six-hour board meeting, the bank said in a statement that the losses, stemming from trades made between 2006-09, would weigh on its net assets in 2012 and were calculated before any possible fiscal effect.

Feb 6, 2013

Monte Paschi loss could be up to a billion euros

SIENA, Italy (Reuters) – Board members at Monte dei Paschi <BMPS.MI > are expected to say on Wednesday that Italy’s third largest bank may have lost up to 1 billion euros on opaque derivatives trades, far higher than the initial estimate.

The trades are at the centre of a probe into former management of the bank which has deepened questions about the role of banking supervisors and the influence of local politicians ahead of Feb 24-25 parliamentary elections.

Feb 6, 2013

Monte Paschi board to reveal extent of derivatives loss

SIENA, Italy (Reuters) – Monte dei Paschi <BMPS.MI > was expected to raise its estimate for the loss on derivatives trades that recently came to light and are now at the center of an investigation against former executives at Italy’s third-biggest bank.

A source close to the situation said the final loss would be announced Wednesday and should be higher than a preliminary estimate from October of around 720 million euros ($974 million).