Silvia's Feed
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.

Dec 20, 2012

ECB criticizes Monte Paschi bailout terms

MILAN/FRANKFURT, Dec 20 (Reuters) – The terms of a state
bailout scheme for Banca Monte dei Paschi di Siena,
Italy’s third biggest lender, could pose more challenges to the
bank’s performance, the European Central Bank said.

The ECB, which will supervise euro zone’s lenders from March
2014, also said on Thursday it was told by the Italian
government too late into the process about the details of the
rescue.

Dec 19, 2012

UBS, Deutsche dealt new blow by Italy fraud verdict

MILAN (Reuters) – An Italian court on Wednesday found Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz), Depfa Bank, JP Morgan (JPM.N: Quote, Profile, Research, Stock Buzz) and UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) guilty of fraud for mis-selling derivatives to Milan that could set a precedent for hundreds of local governments to pursue.

The court ordered the seizure of just under 90 million euros from the lenders which were each fined 1 million euros ($1.3 million). Nine bank employees were handed suspended jail sentences of up to eight months.

Dec 19, 2012

Italy fraud trial verdict deals extra blow to UBS

MILAN, Dec 19 (Reuters) – An Italian court on Wednesday
found Deutsche Bank, Depfa Bank, JP Morgan
and UBS guilty of fraud for mis-selling derivatives to
Milan in a case that could set a precedent for hundreds of local
governments.

The court ordered the seizure of just under 90 million euros
from the lenders which were each fined 1 million euros ($1.3
million). Nine bank employees were handed suspended jail
sentences of up to eight months.

Dec 18, 2012

Italian court to rule in landmark derivatives case

MILAN (Reuters) – An Italian court is expected to rule on Wednesday on whether four foreign banks missold derivatives to the city of Milan in a case seen as a litmus test for hundreds of local governments facing big losses from complex financial contracts.

Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz), JP Morgan (JPM.N: Quote, Profile, Research, Stock Buzz), UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) and Depfa Bank have been charged with aggravated fraud and accused of making 100 million euros ($132 million) in illicit profits from the sale of an interest-rate swap on a bond issued by the city of Milan.

Dec 17, 2012

Monte Paschi bailout gets preliminary EU clearance

BRUSSELS, Dec 17 (Reuters) – The European Commission has
given its preliminary approval to a 3.9 billion euros ($5.1
billion) state bailout for Banca Monte dei Paschi di Siena
(BMPS.MI: Quote, Profile, Research), ending months of uncertainty for Italy’s
third-biggest lender.

The approval is conditional on the bank, which was forced
to request state aid to bolster its weak capital base,
presenting a restructuring plan within six months, the
commission said in a statement on Monday.