Thursday, December 22, 2016

State bailout for Monte dei Paschi – Handelsblatt

banking crisis: Therefore, the Italian banks are under pressure

MilanThe Italian crisis Bank Monte dei Paschi controls on a rescue by the state. The money house from Tuscany, announced on Wednesday evening, to have no anchor investor is found. The third largest Bank in the country, under a mountain of bad loans groans, had hoped to be able to the sovereign wealth Fund of Qatar, to convince, to subscribe for new shares. This alone should make one billion euros. The Option is now on the table, said a familiar with the Situation Person to Reuters. “Without an anchor investor, there is no demand from the other side.”

compacted At the same time, as the Bank is saved. At the session of the Italian Senate and chamber of deputies, the parliamentarians gave the green light on Wednesday that the government is allowed to make up to 20 billion euros in additional debts to be able to the ailing banking sector in case of emergency support.

The more than 550-year history of Monte Paschi

  • the oldest existing Bank was Founded out of necessity. After the plague had nearly wiped out half the population of Siena, founded several Franciscan monks pawnshops to help the poor on the legs. From this, the Monte Pio was born in 1472. Almost 200 years they kept this name until they changed it in 1624, the Monte dei Paschi. This should emphasise its focus on agriculture loans.

  • Under the fascist leader Benito Mussolini, the Bank is under the control of local politicians. Some of their profits are diverted to the time, in order to promote civilian activities, such as the Palio horse race in Siena.

  • In 1995, the former pawnshop is a joint-stock company. From then on, it operates under its current name: Banca Monte dei Paschi di Siena SpA. At the same time, the Bank house is divided into two parts. The Banca Monte dei Paschi di Siena SpA and the Fondazione Monte dei Paschi di Siena, a Non-Profit Foundation. The latter assumes a control function, and uses the dividends to support civilian projects.

  • Shortly before the turn of the Millennium, 1999, the Bank listed on the stock exchange. You will be listed at the beginning or for a share price of € 3.85, thanks to huge demand soon, the ten-fold value.

  • After the IPO, it goes steeply uphill for the old-established money in the house. After Monte had bought Paschi 2007 of rival Antonveneta, the Bank, the third largest lender in Italy. The value of the Deals was estimated at about nine billion euros.

  • Between 2008 and 2011, the former head of Monte Paschi, Giuseppe Mussari, in particular, derivatives uses, losses in the amount of more than 925 million US to compensate for the Dollar. The Italian Bank pays more than $ 200 million in fees to Merrill Lynch, JPMorgan Chase & Co and Deutsche Bank. In 2009, in the midst of the European financial crisis, must support the Italian government by the Bank with 1.9 billion Euro.

  • back To the beginning of the year 2012 Giuseppe Mussari, former boss of the Bank. Shortly thereafter, two notifications from the Bank attract the Italian minds: the losses to obscure, had the Bank lent two billion euros by Deutsche Bank and Nomura Holding, but in vain. Only a month later, the Italian government must assist the Bank with 4.07 billion euros. The EU approves a reorganization plan for the Bank. This provides more than 8,000 layoffs and a sale of 3 billion euros in dividends.

  • Only a year after the approval of the reorganization plan, the Bank fails the stress test of the ECB. More than 2.5 billion euros would be missing the money in the house in case of an emergency, so the cost estimate. In the same month, three former employees, including Ex-chief Mussari be convicted of resistance against the state violence to three and a half years in prison. They appealed the decision. At the 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 does not come easy to the rest. To crashes at the beginning of the year, the share of Monte Paschi to 61 percent. Only a few months later, talks between Italy and the EU-Commission, to develop a Plan to recapitalize the Monte Paschi. In July, the Bank fails the stress test for lenders: Under the assumption of the toughest scenarios, there would be nothing of Monte Paschis capital left. The Bank plans to sell bad loans in the amount of 27.7 billion euros, for a total price of 9.2 billion euros.

The rescue of the crisis-Bank by the Italian government will extend, over several months. The state aid of successes in several steps and required two to three months time, reported the daily newspaper “Il Sole 24 Ore” in its Thursday edition. Also, under the rescue programme, the capital increase will be approximately five billion euros.

The share of the Italian crisis Bank Monte dei Paschi fluctuates on Thursday extremely. The papers fell to the commencement of trading of 6.8 percent to a new record low of the 14.71 euros, a little later you traded in Plus. Again and again, the trade was interrupted because of the automatic volatility suspensions.

five months ago as head at Italy’s largest Bank Unicredit, launched Jean-Pierre Mustier is shown in the Handelsblatt Interview optimistic: “I am extremely confident that there will be a solution for Italy’s banks,” said the Frenchman, wants to collect in the first quarter, a record amount of EUR 13 billion of investors for a capital increase.

Unicredit-chief Jean-Pierre Mustier: “I would like to sell the Hypo-Vereinsbank never”

PremiumItaly’s banks are in crisis. But Mustier expected to be a solution. In the Interview he says, moreover, why the HVB is important, what he thinks of Theodor Weimer – and what Lessons he draws from his paratrooper-time. more…

On Wednesday morning, it was clear that the future of Monte dei Paschis Spitz is on the button. The oldest Bank in the world had announced that the financial situation was much worse than previously known. The liquidity-rich for only four months. So far, the group’s leadership was assumed that the money will be enough for eleven months. Currently, the liquidity cushion is estimated at about 10.6 billion euros.

On Wednesday and Thursday had been exposed to the Monte-shares by temporarily trading. In November, the money the house had been placed from the Tuscan Siena in its shares, in order to support the course. The Parliament’s decision from Rome the title were able to reduce on Wednesday, the first of the losses, they shot at times, even into the Plus. But then the papers gave way to clear – a real roller-coaster ride, which continued on Thursday.


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