Tuesday, April 12, 2016

Atlas, Banks alarm: no intervention risk bail-in – ANSA.it

Alarm of fund promoters Atlante in the preliminary draft of the project: “In the absence of a system intervention – explain – there would be a real risk that the operations Bp Vicenza and Veneto Banca not been fully reflected in the market, bringing in if action of guarantee consortia, to the entry of banks involved in a regulatory proceeded to resolution and subsequent bail-in ”.

it’s called Atlas, as the Titan who was holding on his shoulders the weight of the heavens, the fund promoted by the government with private resources for the banking sector and launched from Sgr Quaestio Alessandro Penati, Cariplo and open to other investors to serve as security to the capital increases network and resolve the problem of suffering.

the European Commission has only ‘preliminary information’ on the fund’s project for banks and ‘is not able to assess it’, but is ‘in contact with the Italian Government’ This is what explains a spokesman for the Commission. The new decree banks, with measures for the acceleration of debt and probably also for compensation of bondholders, could arrive in CDM next week. Renzi expresses confidence that ‘government measures on banks give a signal to the’ markets.
An operation that, as the Prime Minister Matteo Renzi, sees the market “which addresses issues with its own resources without seeking public money.” The fund, which according to some sources will have a budget of 5 billion can be increased up to EUR 6 billion, has in fact, as pointed out Queastio, “reached an important number of participants” on the part of banks, foundations and others and will see the CDP with a limited share.
The new breakthrough came after a summit held at the MEF with CEOs of major Italian banks. At the meeting the details of the mechanism have been explained verbally defined in a positive climate and that, as they explained the participants, it gives confidence on the success of the operation. Besides the premier Matteo Renzi had announced in the morning that this is “the perfect week” for the banks plan of the government.

Of course the meeting was “interim” because the written documentation will be provided tomorrow to banks so that managers can then bring the dossier to the respective boards of directors. The same government, however, announced Renzi and Economy Minister Pier Carlo Padoan, will facilitate even more the creation of the fund not with public aid (not to fall under the ax of the EU) but with “accompanying” standards, so speed up debt collection, putting them in dl banks that will also address the issue compensation. That way the measures taken to make the bankruptcy procedures in order to reduce and make more predictable and rapid re-entry periods easier and faster. Brussels, as the Fund will be based on private resources, will not require prior authorization, but in fact carefully consider the details of the mechanism to see whether there is violation of the rules on state aid.

In the headquarters of Via XX Settembre are then arrived at different times to the Unicredit and Intesa Sanpaolo while at 18 it was the turn of a large patrol of capiazienda of other banks: BNL, Bper, Banco Popolare, BPM, Creval, Credem and Popolare Sondrio, many of whom did not know the details of the new mechanism is the in front of the quota price on the value of suffering as well as the impact on equity of a possible participation in the operation.

the meeting lasted for nearly two hours, would seem to have clarified these questions. You will see now what will be the persons who actually participate in the fund. The foundations of the system, despite the misgivings of some bodies, should ensure around 500 million Euros thanks to the activism of President Acre and the Cariplo Giuseppe Guzzetti. The CDP precisely should maintain a limited amount not to feed the doubts in Brussels.

In the statement issued in the evening, Quaestio notes that Atlas points “to ensure the success of the capital increases required by the Regulatory Authority to banks that today are faced with objective market difficulties, acting as a back-stop facility “. In the front row there are so Popolare Vicenza and Veneto Banca but not only. Also on loans (net in Italy to 88 billion euro) fund emphasizes that the amount that can be “deconsolidated from bank balance sheets will be far greater than those purchased by the Fund, as Atlas will focus its investments on the tranche junior securitization vehicles, being able to rely on those with greater seniority for which there is a clear interest from investors.

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