Mps, to stop short and turn that is closest. The title is a + 11% – Milano Finanza

For Banca Monte dei Paschi “the starting point is to protect savings; the technical solution will be decided in the coming hours,” said the undersecretary at the Ministry of Economy, Pier Paolo Baretta, in an interview. But then he corrected the shooting: “no intervention is planned in the coming hours.” In any case, “we will take any decision in agreement with the European Commission, with Europe. We move within a common framework,” he added.

Mps, then assured Baretta, “he has a solid equity “and then” the choice to make in the coming hours must take into account not only the problems but also the specific conditions “of the institute, he concluded. Also for Roberto Nicastro, president of the good banks, Rocca Salimbeni “has a significant capital position, we do not give wrong messages: the capitalization does not matter.

<'p> As for the shield that the government is studying for banks Italian, “I am confident the ongoing dialogue between the Italian government and the EU Commission,” he said Nicastro stressing that “what we have is a combination of two elements: a tail of a deep economic crisis in which banks are the actors more exposed now finished to see the growth of suffering but have a significant suffering upstream and the other element is that in Italy, unlike other EU countries, there are no

it is not yet clear the shield that the government is preparing for the Sienese bank. On the mat there are various assumptions and on some of these weighs uncertainty about the decision of the EU Commission. The only certainty is that the starting point for solving the problems of MPS is tied to the disposal of the 47 billion euro of loans on which intervened heavily in recent days the ECB. Just on strain of the burden of non-performing loans, rotate the hypotheses being considered by the Ministry of Economy, Bank of Italy, CDP and Atlante.

Some print sources speak of an increase in the capital budget for Mps of € 2-3 billion by government guarantees, up to 4 billion euro, according to MF-Milano Finanza. While according to other media reports, the government is working on a plan in two or more stages, which could be announced soon: the idea is to lighten up a part of the 47 billion euro of Npe MPS , transferring it to a back to Atlas-like fund ( “Jason”) capitalized with a 5-6 billion euro; then recapitalize the Monte via convertible bonds guaranteed by the state.

Instead, it would now excluded the hypothesis of emission Padoan-Bond, similar to the above-Tremonti Bond and Monti-Bond. All while the government looks at Ubi Banca as one of the few market solutions MPS . From yesterday to Victor Massiah it is in London for a roadshow, but his representative is following the dossier with the Treasury. However, the banker would know that must be resolved before the knot of Npl of Rocca Salimbeni.

Tomorrow, the Board of Directors of MPS should respond to the letter of the ECB which, in fact, asked the bank to reduce the Npe of 14.3 billion euro and on Npe ratio to 20% by 2018. “We believe that the demands of the ECB with regard to the reduction in the speed of Npe, the increase in the coverage ratio and the potential negative stress tests, which could lead to an increase in Srep requirements, increase the likelihood of a capital increase of MPS , although it might be difficult to carry out the current market conditions seen. In this case we believe that the potential dilution for shareholders can be significant, “say the Imi Bank analysts in a statement today in which they reiterated hold rating and target price of 0.65 euro on the stock MPS .

For Mediobanca analysts Securities priority is to avoid the bail-in. “And ‘in the interest of the system and politicians. The whole controversy is behind the Italian government’s ability to activate the European Directive Brrd admits that in certain circumstances for Member States to intervene in support of ailing banks with an injection of funds own or purchase of equity instruments “, reminiscent of the analysts of the investment bank.

the public rescue must be limited” to the injections needed to cope with capital deficiencies established in the stress test ” It recognized in Article 32 of the Directive. The ECB will disseminate the results of the stress tests on 29 July. “So in the end, this is a political negotiation with the EU Commission with substantial repercussions for financial stability and for the future political stability in Europe, in our view,” conclude the analysts Mediobanca , reiterating a neutral rating and target price of 0.62 euro on the stock MPS that the stock exchange, having lost more than 30% in the last two sessions, currently earns 9.62% to EUR 0.2907 supported by the ban on short selling yesterday ordered by Consob .

“The losses on the market, with MPS which currently capitalizes less than 800 million euro, less than 10% of its book value, is accelerating the search for solutions in order to avoid a painful bail-in and lay a basis for the regulation of similar cases in the future, “conclude the analysts ICBPI according to which the fragility of the Italian banking assets has been known for a long time and an intervention seems urgent at this point.