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Jan 24, 2013

Monte Paschi faces $1 bln loss on ‘surprise’ trades

MILAN, Jan 24 (Reuters) – Banca Monte dei Paschi di Siena,
Italy’s third biggest bank, revealed on Thursday it could face
losses of as much as 720 million euros ($956 million) on past
trades in financial derivatives which new management only
recently discovered.

Already one of Europe’s most undercapitalised banks, Monte
dei Paschi had to ask last year for 3.9 billion euros in state
aid to plug a capital hole stemming from its vast government
bond portfolio and hedging bets gone wrong.

Jan 23, 2013

Monte Paschi says three structured trades under review

MILAN (Reuters) – Banca Monte dei Paschi di Siena (BMPS.MI: Quote, Profile, Research, Stock Buzz), Italy’s N.3 bank, said on Wednesday it was reviewing three loss-making structured trades made in 2006-09 after its shares plunged for the second day in a row on fears of a mounting shortfall in its accounts.

Seeking to reassure investors, the Tuscan bank said the 500 million euros it requested in extra state aid in November would be enough to absorb a hit on its capital from those trades, which were linked to its vast Italian government bond portfolio.

Jan 23, 2013

Derivatives scandal drags Monte Paschi into Italy election race

MILAN, Jan 23 (Reuters) – A scandal over shady derivatives
deals bleeding money at Banca Monte dei Paschi di Siena
has thrust Italy’s third-biggest lender into the
country’s election campaign and risks embarrassing the
centre-left over its ties with the bank.

The bank, which had to request a 3.9-billion-euro state
bailout ($5.2 billion) last year, is widely regarded as close to
the centre-left PD party, which is leading in opinion polls and
controls the Tuscany region where Monte dei Paschi is based.

Jan 23, 2013

Monte Paschi shares plunge on derivative loss fears

MILAN, Jan 23 (Reuters) – Shares in Banca Monte dei Paschi
di Siena, Italy’s third-biggest lender, fell more than
5 percent for the second day in a row on Wednesday on worries of
mounting losses on some financial derivative positions which it
took in 2008 and 2009.

The stock was down 5.2 percent at 0.2632 euro by 1035 GMT,
having earlier fallen as much as 9 percent.

Jan 23, 2013

Monte Paschi loses at least $293 million on derivative trade: source

ROME/MILAN (Reuters) – Banca Monte dei Paschi di Siena, Italy’s third biggest lender, will book a loss of at least 220 million euros ($293 million) from a three-year-old derivative deal in its 2012 results, a source close to the matter said on Tuesday.

The loss is the latest setback for Monte dei Paschi, which requested 3.9 billion euros in state aid to plug a capital hole stemming from its government bond portfolio and hedging bets gone wrong.

Jan 22, 2013

Monte Paschi loses $293 million on derivative trade: source

MILAN/ROME (Reuters) – Banca Monte dei Paschi di Siena, Italy’s third biggest lender, will book a loss of at least 220 million euros ($293 million) from a three-year-old derivative deal in its 2012 results, a source close to the matter said on Tuesday.

The loss is the latest setback for Monte dei Paschi, which has requested 3.9 billion euros in state aid to plug a capital hole stemming from its government bond portfolio and hedging bets gone wrong.

Jan 22, 2013

Italy’s Monte Paschi loses $293 mln on derivative trade-paper

MILAN, Jan 22 (Reuters) – Banca Monte dei Paschi di Siena
, Italy’s third biggest lender, will book a loss of at
least 220 million euros ($293 million) from a three-year-old
derivative deal in its 2012 results, Il Fatto Quotidiano
newspaper said on Tuesday.

The newspaper said the existence of the “Alexandria”
derivative deal with Japanese bank Nomura, was only
discovered by Monte dei Paschi’s new management last October.

Jan 14, 2013

Italy’s Berlusconi fails to have sex trial suspended

MILAN (Reuters) – Judges in Milan rejected a request by former Italian prime minister Silvio Berlusconi on Monday to halt his sex trial until after a national election next month, but allowed the key witness to avoid giving testimony in open court.

The three judges dismissed his lawyers’ argument that his commitments as head of the centre-right coalition in the February 24-25 election meant he would not have time to attend the trial.

Jan 14, 2013

Berlusconi lawyers request suspension of sex trial as “Ruby” appears

MILAN (Reuters) – The young nightclub dancer at the centre of Silvio Berlusconi’s sex trial arrived in court to testify on Monday but the former Italian premier’s lawyer asked for the case to be suspended until after elections next month.

Karima El Mahroug, 20, and better known by her stage name “Ruby the Heartstealer”, fought her way through a jostling scrum of photographers as she arrived at the court in central Milan where Berlusconi is on trial on charges of paying for sex with a minor.

Jan 7, 2013

Italy’s Monte Paschi up on hopes of reducing state aid

MILAN, Jan 7 (Reuters) – Shares in Italy’s Banca Monte dei
Paschi di Siena rose sharply for a second day on
Monday, with a recovery in the domestic bond market expected to
reduce the lender’s need for state aid.

Analysts said that sentiment in the overall banking sector
was helped by a regulatory decision to ease new liquidity rules,
but that Monte dei Paschi was benefiting in particular from the
fall in Italian government bond yields.