Stefano's Feed
Feb 25, 2015

Italy’s approval of Monte dei Paschi deal raises new questions

ROME (Reuters) – Italy’s Monte dei Paschi bank hoped to become a big player of European finance when it bought rival Antonveneta in 2007. Instead, the takeover triggered a decline that is culminating in the 500-year-old bank putting itself up for sale.

Now, evidence uncovered by Reuters shows Italian regulators knew of the risks harbored at Antonveneta before approving the deal.

Feb 16, 2015

UniCredit leads Italian banks with new bond sale to meet capital rules

MILAN, Feb 12 (Reuters) – UniCredit, Italy’s
biggest bank by assets, has launched a new bond offer to retail
investors to comply with international banking rules on
supplementary capital requirements that could spur other Italian
banks to follow suit.

In reporting 2014 earnings last week, UniCredit and other
Italian banks stopped counting subordinated bonds as part of
their Tier 2 capital where gradual repayment begins less than
five years after issue.

Feb 12, 2015

Italy set to take stake in Monte dei Paschi – source

ROME, Feb 12 (Reuters) – The Italian treasury will take a
stake in the country’s troubled lender, Monte dei Paschi di
Siena, as the bank will pay a coupon on state loans in
shares because it ended the year with a loss, a treasury source
told Reuters.

Monte dei Paschi on Wednesday reported a loss of 5.34
billion euros ($6.07 billion) for 2014. Under the terms of state
loans it received in 2013, if the bank does not report a profit,
it has to pay the annual coupon on the loans with new shares.

Jan 15, 2015

Monte dei Paschi in talks as ECB gets tough on capital

ROME/FRANKFURT, Jan 15 (Reuters) – Executives from Monte dei
Paschi di Siena are making a last-ditch effort to
persuade the euro zone’s new banking supervisor Daniele Nouy to
ease her demands on the Italian lender, sources close to the
matter said, as the regulator takes a more robust approach to
risk.

Nouy has proposed higher minimum capital targets for some of
the 120 large banks she supervises, including Monte dei Paschi,
using data gleaned from the European Central Bank’s (ECB) review
of their balance sheets in October.

Jan 15, 2015

Monte Paschi executives in talks with ECB over capital plan: source

ROME (Reuters) – Executives from Monte dei Paschi di Siena, identified as the weakest bank in a Europe-wide review, will discuss the lender’s plan to boost its finances with the European Central Bank on Thursday, a source with knowledge of the matter said.

Monte dei Paschi Chairman Alessandro Profumo and CEO Fabrizio Viola hope the ECB will lower capital demands for the Tuscan lender if it books around 3 billion euros ($3.5 billion) in additional writedowns for bad loans in the fourth quarter of 2014.

Jan 15, 2015

Monte Paschi execs in talks with ECB over capital plan-source

ROME, Jan 15 (Reuters) – Executives from Monte dei Paschi di
Siena, identified as the weakest bank in a
Europe-wide review, will discuss the lender’s plan to boost its
finances with the European Central Bank on Thursday, a source
with knowledge of the matter said.

Monte dei Paschi Chairman Alessandro Profumo and CEO
Fabrizio Viola hope the ECB will lower capital demands for the
Tuscan lender if it books around 3 billion euros ($3.5 billion)
in additional writedowns for bad loans in the fourth quarter of
2014.

Jan 9, 2015

Monte dei Paschi says ECB asking for 14.3 percent core capital level

MILAN/ROME, Jan 9 (Reuters) – The European Central Bank
(ECB) has asked Monte dei Paschi di Siena to raise its
core capital level to 14.3 percent as it sets new, tougher
requirements for riskier lenders to bolster their financial
strength.

The Tuscan lender, which emerged as the weakest bank in a
Europe-wide health check of the sector last year, said the ECB
request was preliminary and subject to changes, adding it was
reviewing the proposal and would reply on Jan. 16.

Dec 1, 2014

After stress tests, tougher questions coming for Europe’s banks from ECB

FRANKFURT/ROME, Dec 1 (Reuters) – After subjecting European
banks to year-long “stress tests” of their balance sheets, the
European Central Bank is now planning a deeper examination to
see whether their businesses are sufficiently profitable,
efficient and well-run.

For lenders in crowded markets such as Germany and Italy,
this “business model review” may prove a tougher one to pass,
raising pressure on weaker players to consolidate, increase
capital, cancel dividends or alter how they operate.

Oct 31, 2014

Former Monte Paschi management convicted as crisis mounts

ROME/MILAN (Reuters) – The former top managers of Monte dei Paschi di Siena (BMPS.MI: Quote, Profile, Research) were sentenced to three-and-a-half years in jail on Friday over a 2009 derivatives scandal from which the bank is still struggling to recover.

Former Chairman Giuseppe Mussari, former Chief Executive Antonio Vigni and former finance chief Gianluca Baldassari were all found guilty of misleading regulators over risky derivative trades meant to conceal mounting losses.

Oct 31, 2014

Monte Paschi’s options dwindle as Intesa rules out tie-up

ROME/MILAN, Oct 31 (Reuters) – Italy’s Intesa Sanpaolo SpA
ruled out stepping in to take over rival Banca Monte
dei Paschi di Siena on Friday, leaving the struggling
Tuscan lender still searching for fresh capital to meet
regulatory requirements.

The future for Monte dei Paschi, the world’s oldest bank, is
uncertain after European Central Bank (ECB) stress tests left it
needing 2.1 billion euros ($2.6 billion) to meet capital
thresholds designed to ensure the stability of the banking
system.