Friday, December 30, 2016

Ecb ready to accelerate on the level of Mps – The Sun 24 Hours

FRANKFURT – No official comment from the european central Bank on the statements of the minister of Economy, Pier Carlo Padoan to the “Sun 24 Hours”, according to which the communication supervision of Monte dei Paschi di Siena said, ” the sin of opacity (five rows and three numbers,” said Padoan), and the attitude of the supervisors is in the times is in the evaluation was “very hard”. The expectation of Frankfurt, according to sources who have closely followed the dossier to Mps, is that it starts now in a very short time an intensive dialogue on the new plan, in the hopes of the supervisors, is expected to bring a good part of the positive elements contained in the previous one, on whi ch it was based, the failed recapitalization private, in particular the cleaning of the balance sheet assets, with the elimination of non-performing loans. The theme of transparency, to admission of many also in Frankfurt, however, remains problematic for the supervision of the Ecb.



Padoan: just with the opacity of the supervision of the Ecb. Mps, full refund only on the bond 2008

The communication on Mps to look at the same sources, is a necessary act in the presence of a required recapitalisation of precaution with the intervention of the Government. In this, the supervision is limited to detect that the bank is insolvent, one of the requirements for the recapitalisation of precaution, and how much is the shortage of capital compared to stress-test against, which was published last July, and in which the Mps was the only one of the 50 banks surveyed at the end with a capital negative. However, it is not to be considered a formal request of capital, to € 8.8 billion (that would be the capital Cet1 capital of the Mps to be above 8%, as was the case last year for the Greek banks, in the face of the adverse scenario), but only a calculation based on the elements of the stress test and which will then have to take account of the results of the new plan. It is not, therefore, comparable, they say in Frankfurt, with € 5 billion of new capital provided by the bank in the plan now fallen, and which included the total elimination of the Npl. This is obviously not the only element, which remains one of the keys in the final evaluation of supervision.



Germany: the Eu and the Ecb to ensure the respect of the rules on Mps

Formally, the restructuring plan must pass the scrutiny of the european Commission, with which the Italian Government has already begun to face, but will then be notified to the Ssm, the european supervision of the Ecb, and the law and the supervisory authorities to determine the capital requirements. However, it will be the discussion with Brussels to take on the connotations of the more "political", and in part this has already happened with a number of positions especially from the German side. With accents similar to one another, stressing the rigour of the interpretation of the new rules for banks in crisis, you are pronounced in the last hours, the ministry of Finance, the German president of the Bundesbank, Jens Weidmann, and Isabel Schnabel, one of the five "wise men", the economic advisers of the Government of Berlin.



“the Ecb will keep the point”

If, on the merits of the recapitalisation, the match is still all to play, with different actors involved, the problem of opacity raised by Padoan is a sore point for the supervision of the Ecb, and not today. Even if in Frankfurt note that in the supervisory Board that took all the decisions is represented by the Bank of Italy, and that this should facilitate through with the Government, some sources admit that there is a lack of communication of the assessment made, and in this case of explanation of how we got to the "three numbers". The theme of the rest came even publicly, in the open, and reflects the divergence of views between different members of the european supervision. Ignazio Angeloni, a member of the board appointed by the Ecb, for example, has argued in several speeches the need that the Ssm adopt the standard of transparency and communication more advanced. The other, starting from the chairman of the supervisory Board, Danièle Nouy, appear to be of a differen t opinion. The fact remains that, in cases such as that of the Mps, the opacity reported by Padoan and "surprises" are likely to contribute to the continuation of the crisis.

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