Thursday, April 16, 2015

Mps, closure of Alexandria would cost a billion. Viola: “Do not go … – 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 Bond Treasury that will become a shareholder of the bank in July. The CEO Fabrizio Viola minimizes: “The billion” of which has been discussed at this time “is not the cost to be recognized.” Possible closure at current spread levels, the operation Alexandria would “impact near zero on Common Equity Tier 1″ main indicator of capital strength, it said in a note in which Mps you specify that the CET1 discounts “largely” the effects of a closure.

After a hard restructuring, the institute Sienese may present appointment for the wedding with “dress ironed” as 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 an ongoing risk of the assets of Rocca Salimbeni and should be eliminated in a short time “in unless there is a proven legal impediment in the future as a result of the civil proceedings or ongoing criminal investigation. “

The issue 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 have pointed out that the closure of relations with Nomura by July creates prejudice against the bank: the restructuring is not yet complete and “still today, part of these activities consists in the right of bank to receive the damages suffered “(700 million is the demand for MPS). Moreover, Siena believes that the extinction of Alexandria risk not only weaken the actions for damages, but also to set “a profile of liability of directors” so far 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 Baldassari , former finance chief of Mps. Transactions, four in total, would take place after the renovation of Alexandria proved harmful to Mps. Enough to management of Rocca Salimbeni to flaunt safety in assembly: “It will have to pay damages Nomura” that Siena is “recalculating” explained 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” added the banker that has been renovated to the presidency of the MPS. Henceforth 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 , Lucia Calvosa .

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