Vegas acquits Consob: “clear risks for subordinated bonds, but prospects too complex” – The Republic

MILAN – The chairman of Consob, Giuseppe Vegas, promotes Atlas and warns the European Union from the temptation to put a ceiling on the holding of securities of the part of banks State. Then performs the role of authority in the case of the Supervisory four banks ended in liquidation (Carichieti, Banca Marche, Banca Etruria and Cariferrara): “clear risks, although prospects remain too complex.” These are the salient passages of the annual report of the number one authority and Exchange that this limit to the holding of government bonds “would have the effect of favoring states with higher ratings and force banks to reduce sharply and a disorderly exposure with the worst rated government bonds. This would result in a new wave of turbulence and instability in the government bonds market. the resulting increase in interest rates would have negative effects on the sustainability of public debt. “

Titles subordinates. The number one Consob defends criticism from the supervisory work, especially in relation to sales of the subordinated notes of the four failed banks (Carichieti, Banca Etruria, Banca Marche, Cariferrara): “The statements have been prepared in accordance the transparency rules laid down by the prospectus “and” gave most clearly to all the risk factors associated with the complexity of the instruments and the situation in which they poured the banks “, including when the risk of” lose the total capital invested .

<'p> essentially Consob autoassolve from international criticism on his role as vigilante markets and recalls that “under investigation in order to respect the rules of conduct in the placement of these products to retail customers” . Translated: if there was willful, the fault is only the sellers, because “the events relating to the winding-up of the four banks do not question the validity of the supervisory models down on the provision of investment services.” Vegas then mentioned how the phenomenon of subordinated bonds become ‘waste paper’ has been limited: “The amount held by retail customers at 30 June 2015 was 374 million euro, equivalent to 1,17% of the total “subordinated bonds issued by banks and held by investors.

schedules too complex. For the one Consob number, the problem is rather linked to the prospectuses “too long and complex document to be read and fully understood by the investor.” Vegas then announced the launch of “consultation” on three recommendations to “clear information” and greater “transparency. An excess of information almost always tantamount to a lack of information.” The chairman of Consob further observes that the Commission “has been among the few European authorities to require the inclusion, in the opening pages of prospects, of a specific section, called warnings for the investor, which contains a description of the main risks investment. ”

Atlas . Also on the opposite bank Vegas focused on the fund birth Atlas aims to relieve banks from suffering: “Private Initiatives to set up specialized funds in the banking sector recapitalization and purchases of the riskiest tranche operations securitization of loans are extremely important. They can provide effective and immediate answers to the structural problems of Italian banks. “

Topics :

consob

report consob 2016

liquidated banks

Starring:

Giuseppe Vegas