The oldest bank in the world, the Italian bank Monte dei Paschi di Siena is threatening to move up one of the biggest turnarounds in the euro zone. Explain to the end of this week, the bank was founded in 1472 from Siena, the EU banking supervision EBA as a capital gap should be filled from 3.26 billion euros
http://translate.google.de/translate?sl=de&tl=en&js=n&prev=_t&hl=de&ie=UTF-8&layout=2&eotf=1&u=http://orf.at/stories/2127770/&act=url
Many predict that the bank will declare bankruptcy till the Italian elections. [...]
money.cnn.com
January 29, 2013
Italy is grappling with a scandal at the world’s oldest bank that could affect the outcome of elections next month and dent Mario Draghi’s record as Europe’s top central banker.
Monte dei Paschi di Siena, founded in 1427, last week revealed it faced losses of up to €720 million on three derivatives trades, carried out in 2006-2009, details of which were kept hidden from regulators.
Italy’s third-biggest bank was forced [...]
By Mike “Mish” Shedlock
Yesterday I commented on how Italy’s 3rd largest bank hid derivative losses,how it might affect the upcoming Italian elections, and why ECB president Mario Draghi should be under fire as well.
For details, please see Italian PM Under Fire; Italy’s 3rd Largest Bank Hid Derivative Losses: ECB Says “Matter for the Italian Authorities” (To Sweep Under the Rug).
As is typically the case, there is more going on than mainstream media [...]
Deutsche Bank AG (DBK) designed a derivative for Banca Monte dei Paschi di Siena SpA at the height of the financial crisis that obscured losses at the world’s oldest lender before it sought a taxpayer bailout.
Germany’s largest bank loaned Monte Paschi about 1.5 billion euros ($2 billion) in December 2008 through the transaction, dubbed Project Santorini, according to more than 70 pages of documents outlining the deal and obtained by Bloomberg News. The [...]
AFP - Standard & Poor’s on Wednesday cut its credit rating for troubled Italian bank Monte dei Paschi di Siena — the world’s oldest surviving lender — to speculative-grade status of BB+ from BBB-.
The ratings agency said it was also placing the bank on negative outlook.
“Deteriorating trends in Banca Monte dei Paschi di Siena’s financial position make it unlikely that the bank would restore profitability and improve its capital and funding [...]
france24.com
October 18, 2012
Moody’s credit rating agency on Thursday downgraded the world’s oldest bank, Italy’s Banca Monte dei Paschi di Siena, to “junk” status on worries government recapitalisation plans will prove insufficient.
The lowering of BMPS’s rating by two notches to “Baaa3?, a non-investment grade, reflects Moody’s view that “there remains a material probability that the bank will need to seek further external support,” the agency said.
Critically exposed to the eurozone debt [...]
London Telegraph
August 4, 2012
“With Italy facing a potentially deeper and more prolonged recession than we had originally anticipated, we think Italian banks’ vulnerability to credit risk in the economy is rising,” S&P said in a statement.
“In this context, the combined effect of mounting problem assets and reduced coverage of loan loss reserves makes banks more vulnerable to the impact of higher credit losses particularly in the event of deterioration in [...]
It is late in the afternoon on a Friday, which means one thing: it is time to dump all left over bad news under the rug. Sure enough, here comes S&P. From Bloomberg:
S&P CUTS RATINGS ON 15 ITALIAN FINL INSTITUTIONS
S&P TAKES RATING ACTIONS ON 32 ITALIAN FINL INSTITUTIONS
BANCA MONTE DEI PASCHI DI SIENA SPA CUT TO BBB-/NEGATIVE/A-3
BANCA POPOLARE DI MILANO SCRL CUT TO BB+/NEGATIVE/B BY S&P
S&P SEES ITALIAN BANKS’ VULNERABILITY [...]
Italy’s oldest bank Banca Monte dei Paschi di Siena (BMPS) has announced plans to cut some 4,600 jobs within the next three years.
This comes after the bank sought the government funds to prevent its imminent failure.
BMPS said on Wednesday that it is set to borrow around 1.5 billion euros (USD 1.87 billion) from the Italian government by the end of the year in a bid to pay off its debt [...]
The world’s oldest bank, Italy’s Banca Monte dei Paschi di Siena, has received state help to bolster its finances.
The Italian government has agreed to provide 2bn euros ($2.5bn; £1.6bn) of support via buying especially created bonds from the bank. It will also renew an existing loan bringing its total support to 3.9bn euros.
The bonds can be converted into equity at the bank’s request.
The state aid still needs to be approved [...]
via Google translate:
The Council of Ministers, upon proposal of the Minister of Finance, has approved emergency measures to increase the capital base of Banca Monte dei Paschi di Siena SpA (MPS) in the implementation of the Declaration of the Heads of State or Government of ‘EU of 26 October 2011 on measures to strengthen the banking sector. The government decision was taken following the recommendation EBA/REC/2011/1 8 December 2011 which sought to ensure [...]
Some people know Banca Monte dei Paschi di Siena as one of the biggest banks in Italy (lately best known for being either halted down, about 90% of the time, or up, the remainder) with 3,000 branches, 33,000 employees and 4.5 million employees. Others know it for being the world’s oldest surviving bank, founded in 1472 by the magistrate of the then city-state of Siena. Most will henceforth know it as [...]
Italian financials are heavily declining as the FTSE MIB sells off more than 2 percent.
A number of banks have been halted after falling more than five percent.
UniCredit: Down 5.15 percent [HALTED]
Banca Monte dei Paschi di Siena: Down 5.78 percent [HALTED]
Banca Popolare di Milano: Down 5.39 percent [HALTED]
Below, a look at the day’s trade in UniCredit.
Bloomberg
businessinsider
The former boss of Unicredit, Italy’s largest bank, will go on trial for alleged corporate tax fraud, a Milan judge has announced.
Alessandro Profumo, currently chairman of Banca Monti dei Paschi di Siena, and 19 other executives stand accused of hiding tax liabilities using instruments arranged by Barclays.
Mr Profumo, who denies any wrongdoing, resigned from Unicredit over share sales to Libya.
The trial will begin on 1 October.
“I await a public [...]
Reuters
A top Italian banker said on Friday that the European single currency was “on the edge of the abyss”, and indicated that national regulators were helping to cripple interbank lending across the euro zone by urging banks to lend domestically.
“The Greeks will decide on their own whether to stay in the euro or leave it, but if they leave and we haven’t decided what to do to keep the others [...]
Italian police searched the headquarters of Banca Monte dei Paschi di Siena on Wednesday, investigating whether the world’s oldest bank misled regulators over its pricey 2007 purchase of smaller rival Antonveneta from Spain’s Santander.
A statement from prosecutors in Siena, where Monte dei Paschiis based, said the offices of the bank’s main shareholder as well as those of several Italian and foreign financial banks that had dealings with the Tuscan lender [...]
One word: Spain, and more specifically, 6.00%+. That’s where Spanish 10 Year bond yields are again, with Spanish CDS soaring to a fresh all time wide of 512 bps (+13.5 bps), and the Spanish-Bund spread blowing out to the widest since November. And to think it was only two days ago that the schizo market interpreted Spain’s bank sector nationalization as good news. It may be for the bank sector (for a few days [...]
From FT:
The European Banking Authority is to challenge a significant proportion of the capital restructuring plans put forward by the continent’s leading banks to meet tough new capital requirements, say three people familiar with the process.
The regulator said in December that 30 banks needed to boost capital by an aggregate €115bn to reach a 9 per cent target for core tier one capital, a key measure of financial strength.
The banks were given until January 27 to [...]
|
It only takes a few moments to share an article, but the person on the other end that reads it might have their life changed forever
Contact Information:
Submit: articles [ at ] investmentwatchblog.com
Advertising: ads [ at ] investmentwatchblog.com
General: admin [ at ] investmentwatchblog.com
|
