MILAN/ROME (Reuters) – Italy’s Banca Monte dei Paschi di Siena (BMPS.MI: Quote, Profile, Research) is set to post a 2.5 billion euro (£2.12 billion) loss as it books higher bad debt provisions and losses on derivatives trades targeted by a fraud investigation, a Reuters poll forecast.

According to the average estimate in the poll of eight analysts, the bank will report a second year of big losses when it releases results for 2012 on Thursday, following a 4.7 billion euro loss in 2011.

SIENA, Italy, March 6 (Reuters) – Italy’s Monte dei Paschi
di Siena (BMPS.MI: Quote, Profile, Research) is seeking damages of at least 1.2 billion
euros ($1.56 billion) from two former executives and investment
banks Nomura (8604.T: Quote, Profile, Research) and Deutsche Bank (DBKGn.DE: Quote, Profile, Research) over
derivative trades, a judicial source with direct knowledge of
the matter told Reuters.
The Tuscan bank, Italy’s third-biggest, suffered losses of
around 730 million euros ($954 million) from a number of
structured finance deals carried out under former Chairman
Giuseppe Mussari and former Director General Antonio Vigni.
It said last week it was seeking damages from Vigni, Mussari,
Nomura and Deutsche Bank over the two costliest trades, without
giving further details. [ID:nL6N0BT4NW]

The source said the bank was seeking “at least 700 million
euros” from Vigni, Mussari and Nomura for a 2009 structured deal
known as Alexandria.

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).

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.

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.

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.

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.

SIENA, Italy, Feb 6 (Reuters) – Monte dei Paschi
misled the Bank of Italy over a 1-billion euro hybrid instrument
it used to partly fund its acquisition of rival bank
Antonveneta, Siena prosecutors alleged in a document reviewed by
Reuters on Wednesday.

As part of their ongoing probe, prosecutors alleged in the
document, dated Feb. 1, that the Tuscan bank struck a deal which
violated requirements set by the central bank over the hybrid
financial instrument, known as FRESH 2008.

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.

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).