Thursday, April 16, 2015

Mps, close Alexandria would cost a billion. But Viola minimizes – The Daily

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Not enough tens of billions red accumulated in three years. For the Monte dei Paschi di Siena now looms on the horizon also a new gross loss a billion linked to the hypothesis of closing obliged , by July 26, the derivative Alexandria . Despite the donuts bailout offered by the State, Rocca Salimbeni is still a giant with feet of clay that has just launched a new increase from 3 billion . The recapitalization will strengthen the financial position of the group and to give back a little over a billion Monti Treasury Bond, which will become a shareholder of the bank in July.

After a hard restructuring, the institute may present to Siena ‘appointment to the wedding with “dress ironed” as he explained in a marathon Fabrizio Viola , reconfirmed until 2017 CEO of the group. However, before thinking about the aggregations, MPS will have to complete the capital increase, after the path to be 5.3 billion losses recorded last year. The recapitalization will start as early as the beginning of May to end by September 30 . A large amount of time to make it possible to better evaluate the impact of a possible closure of Mps “forced” exposure with Nomura . Hypothesis that, until a month ago, was not being considered by the management.

Only recently the leaders of Mps have in fact had to deal with the new demands of capitalization advanced by European Central Bank . The request for Frankfurt to close the onerous contract signed with Nomura by July 26 is in fact arrived at the top Mps on 10 February. In a letter, as reported by The Messenger , the ECB explained that the derivative Alexandria is a permanent risk on the heritage of Rocca Salimbeni and should be eliminated in a short time “unless that no invitation tried legal impediment in the future as a result of the civil proceedings or of ‘ criminal investigation in progress. “

The question has alarmed the leaders of Mps who informed the Milan prosecutor’s office requests for Frankfurt with a letter dated February 18 . In the letter Viola and President Alessandro Profumo write that the early termination of the relationship with Nomura by July would cause a gross loss of 1 billion and the risk of weakening the actions for damages in progress: the restructuring activities are not yet finished and it said in the message, “even today, some of these activities is the right of the bank to receive rest of the damage suffered” (700 million is the demand for MPS). Moreover, Siena believes that the early repayment can configure “a profile of liability of directors ” hitherto engaged in “compensation hypothesis completely inconsistent with the closing of the transaction to date.”

The position of Nomura is on the other hand very delicate. Since the closing of the investigation in Milan emerged responsibility for the bank and for its chief trader Europe, Raffaele Ricci . An international rogatory to Singapore , required by the magistrates of Siena and then transferred to the Milan prosecutors, found that a company of the British Virgin Islands , due to Ricci, has shot nearly a million euro to Gianluca Baldassarri , former finance chief of Mps. Transactions, four in total, would take place after the renovation of Alexandria proved harmful to Mps.

Just enough to management of Rocca Salimbeni to flaunt safety at the meeting: “Nomura will have to make good the damage” that Siena is “ recalculating ,” said Profumo, who confirmed his desire to leave the post after the recapitalization. “If today there is someone who should be concerned about, is the counterpart,” said the banker, renewed the presidency of Mps. Purple for his part in the evening downplayed the extent of the damage that requests Eurotower could cause the institute claiming that “a billion” of which he spoke “not the cost to be recognized.” And in a note Rocca Salimbeni states that, at current spread levels, the closing of Alexandria would have “an impact near zero on Common Equity Tier 1″, that is the main indicator of financial soundness.

From now on Profumo will be joined by Vice President Roberto Islanders in a council that for the period 2015-2017 increased from twelve to fourteen directors, including Fiorella Kostoris , Fiorella Bianchi , Christian Whamond and Lucia Calvosa .

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