SIENA Three positive news have accompanied yesterday, the Monte dei Paschi di siena on the eve of the meeting the most important of its history, which opens this morning in Siena, that for the survival of the world’s oldest bank.
Until the last quorum was uncertain because many shareholders in the meantime, have gone astray, as the same MPS foundation a few days ago has dropped from 1.5 to 0.8%. But yesterday, at the Rocca Salimbeni was taken for granted that 20% of the necessary capital had already been reached. The shareholders are called to elect as the new chairman, Alessandro Falciai in the place of the resigning Massimo Tononi, but especially to the rate increase from 5 billion euros, without right of option, which made them clear. As a refreshment, they will be granted a part of the securitisation of all loans defaulted, the junior tranche (most risky), estimated by the bank 427 million, even if nominally it is equal to 1.6 billion. Less than the 650 million that today Mps capitalizes on the Stock exchange.
The other two news are equally important. The european central Bank — which has been going on to Siena, an inspection on credits which should be completed in the first half of 2017, has given the go-ahead for the entire rescue operation orchestrated by Jp Morgan and Mediobanca. And yesterday the Mps has in fact cashed a decisive “yes” to the conversion of the bond into shares from the individual major bondholder of the bank: the General, who has in his belly 400 million of subordinated securities.
He said the “chief executive officer” of the Lion, Philippe Donnet: “we can Not do at the same time a conversion of the bond and the Atlas 2″, that is, pay a contribution of 200 million to the fund will have to buy another tranche of the securitisation Mps for $ 1.6 billion. “The conversion has the most value,” he specified the top manager, “for us, the priority is Monte Paschi”. If she converted all of the bonds, the General would become a shareholder of Mps to about 8%, and in fact it would be second only to the investor a stable (“anchor investor”), who must still, however, crops up: should be the sovereign wealth fund of Qatar, Qia, with an investment of 1 billion, equal to 20% of the bank. From the front of the ceo, Mark Morelli, do not get out of balance but in the bank it is likely a conversion of bond much more than the minimum amount of 1,043 billion indicated yesterday in the integra tion of information requested by the Consob. The most optimistic estimates speak of more than 1.5 billion.
of Course, the operation is far from done: much will depend on the referendum. The victory of the “no” might cause a turbulence on the markets so fade the consortium or warranty as to discourage the investor stable. However — it has specified yesterday the bank — there is no plan B. Even if it is evident to all the protagonists of the operation, that the bank, in the event of the bankruptcy of the increase, will not end up in the bail in, but you will have to find some form of intervention, even the public. Is an uncertainty on the markets is also reflected in the spread, climbed up to an altitude of 186 points. It will definitely be a rescue very dear to 448 million in commissions, although a good portion will be paid to the banks that you have worked only in case of success.
For banks, however, the narrow ruling could not finish: to complete the financial architecture of post-crisis (Basel 3), the Eu Commission proposed yesterday a new package of rules that update the requirements of the capital of some banks. Among the rules, a limit on the financial leverage to avoid loans are excessive, as well as the introduction of a minimum level of loss-absorbing capacity (Tlac). But are also relieved of provisions to cover loans to small businesses and infrastructure.
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November 23, 2016 (amendment of November 23, 2016 | 21:45)
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