Europe’s banks a break: German Bank on a new all-time low – Handelsblatt

Frankfurt stock exchange

Not only German bank shares from collapsed

(Photo: AP)

Frankfurt / Dusseldorf on the stock markets in Europe, investors have set on Tuesday fully on risk avoidance. In particular, weak banking stocks pushed most of the major country indices between one and phase, more than two percent to their lowest levels for around two weeks.

Europe fell Banks under powerful selling pressure, although the European Banking after its stress test of the greatest majority had attested sufficient capitalization. This included Commerzbank, almost twice as much as gave the German bank, which closed 4.8 percent in the red after their departure from recent profit target by 9.2 per cent price fall in Dax. Commerzbank therefore reached an all time low, the German Bank fell below its lowest level at least shortly before the close of trading.

The more than 550-year history of Montepaschi

• founded out of necessity. After the plague had wiped out almost half the population of Siena, founded several Franciscan monks pawnshops to help the poor to his feet. This led in 1472 the Monte Pio. Close to 200 years, they kept this name until they changed it in 1624 in Monte dei Paschi. This should emphasize their focus on agricultural loans.

• under the fascist leader Benito Mussolini, the bank is placed under the control of local politicians. Some of the profits will be diverted at the time to promote civil active features quality such as the Palio in Siena.

• In 1995, then the former pawnshop is a joint stock company. Henceforth it operates under its present name: Banca Monte Paschi di Siena SpA dei. At the same time, the bank is divided into two parts. Banca Monte dei Paschi Siena SpA and Fondazione Banca Monte dei Paschi di Siena, a non-profit foundation. The latter assumes a control function and uses the dividends to support civil projects.

• Just before the turn of the millennium, in 1999, the bank goes public. Will it listed at the beginning nor for a share price of 3.85 euros, it is thanks to a huge demand soon tenfold value.

• After the IPO, it goes steeply uphill to the long-established money home. After Montepaschi had bought the rival Antonveneta 2007 the Bank was the third largest lender in Italy. The value of the deal was then estimated at about nine billion euros.

• between 2008 and 2011 using the then head of Montepaschi, Giuseppe Mussari, particularly derivatives, to losses amounting to more than 925 million dollars to compensate again. For paying the Italian bank more than 200 million US dollars in fees to Merrill Lynch, JPMorgan Chase & amp; Co and the German Bank. 2009 amid the European financial crisis, the Italian Government must support the Bank with 1.9 billion euros.

• At the beginning of 2012 occurs Giuseppe Mussari, former head of the bank, back. Shortly after arouse two communications from the Bank, the Italian minds: In order to cover losses, the bank had ever two billion euros lent by Deutsche Bank and Nomura Holding – but in vain. Just one month later, the Italian Government has to support 4.07 billion euros the bank. The EU blesses then from a restructuring plan for the bank. This provides more than 8,000 layoffs and a sale of 3 billion euros in dividends.

• Just one year after the rubber stamp of the restructuring plan the bank precipitated by the stress test of the ECB. More than 2.5 billion euros would the money home are missing in an emergency, so the calculation. In the same month, three former employees, including ex-chief Mussari, sentenced to three and a half years in prison for civil disorder. They appealed. End of the year then the next shock: The bank has more than 52 billion in bad loans. Only half of it is covered.

• However, the bank simply does not settle. At the beginning of the share of Montepaschi crashes by 61 percent. A few months later restart talks between Italy and the European Commission to develop a plan to recapitalize Montepaschi. In July, the bank precipitated by the stress test for lenders: Assuming the toughest scenario would of Monte Paschis capital nothing left. The bank is now planning to sell bad loans amounting to 27.7 billion euros for a total price of 9.2 billion euros.

Unicredit were temporarily suspended from trading on the Borsa Italiana and sank due to a capital speculation last 7.6 percent, while on the eve of yet friendly Monte dei Paschi than last place share in Mib slumped 11.6 percent. Prime Minister Matteo Renzi secured a market-based solution for dealing with bad loans in the problem bank.

Other banks with above-average losses were about the Athenians Alpha Bank with 6.3 percent, the UBS meantime 6.7 minus percent, credit Suisse meanwhile 6.3 percent and the weak in the stress test Bank of Ireland with 5.8 percent.