From Frankfurt arrived a no and so Siena tries to take more time alone. According to what reported by Reuters in the early afternoon of Friday, awaiting formalization, but without that it is received no denial, the supervisory board of the Ecb, at the end of a very long meeting that began Thursday afternoon, has rejected the request of the Monte dei Paschi di Siena a extension of 20 days at the end of the year to complete the capital increase by 5 billion. Now for the Rocca Salimbeni on the road of saving state is almost forced. A framework that int ersects inevitably with the crisis government: of the face of the urgency to enact the decree for the recapitalization institute money it is likely that the president of the Republic Sergio Mattarella will accelerate the choice of the name, to entrust the guidance of the executive is intended to bring the Country up to the launch of the new electoral law. Well known to the board of directors of the bank of siena that, at the end of yet another meeting, on the evening of Friday did you know "that you have not received no communication" by the Ecb, the bank "continues, therefore, all the activities leading to the completion of the recapitalisation. The board was then updated on Sunday 11 December, at 16", when it is more likely that the task of forming the government has already been entrusted to you.
Palazzo Chigi arrives in the meantime, the informal confirmation that the text to measure saving has already basically ready to be launched if necessary. But it is precisely difficult to accept it can be a premier, Matteo Renzi, who is in charge only for current affairs and that he carefully avoided, the first of the referendum, to sign it, thus bearing the responsibility of recognizing the flop of the plan, "market" developed in July by the advisor, Jp Morgan and Mediobanca on the pressure of the executive, who did not want to sign the save of the tuscan bank with public money. For fear of jeopardizing the positive outcome of the constitutional referendum that is not, however, gone to a good end. And so it touched the Ecb pull the plug, with the immediate repercussions both on the title of the institution, whose negotiations have not yet been suspended from the Consob by Giuseppe Vegas, in spite of the drama of the situation. Immediately after spreading of the news of the Mps stock is suspended in the Bag in the auction of volatility. Readmitted to trading, closed with a fall of 10.5%. The free fall also some of the subordinated bonds that may be paid to the account of the rescue. The subordinated Tier2, with a maturity in September 2020 has lost 11% on the Mot, 54,55, while the bond 2,16 billion finished in the hands of the investors retail has lost 8.2%, at an altitude of 50, on the platform Ddt Mps. More content the decline in other securities, such as the Tier2 with maturity April 2020 of 2.1% on the platform Euro Tlx). Milder, but still sensitive, and the effects on government bonds to ten years, which have seen yields back above 2% with an differential with respect to the Bund with the same maturity that has risen from 161 to 168 points.
The hypothesis on the table, and the position of the board of directors – waiting for resolution of the board of directors of the Rocca Salimbeni, who met in the afternoon to assess what can be done also to reassure the depositors in order to prevent the bank from succumbing to asphyxiation, before it reaches the hand of the State, it is then translated into substance in a half-reassurance, with a refresh after the arrival of a president in charge. In the meantime, however, there are many hypotheses on the possible mode of intervention of the State. One solution scheme is on the table since last summer, when you talk about a recapitalization as a precautionary uponthe burden-sharing", i.e. sharing of the burden, the responsibility of the shareholders and bondholders subordinated, which would be cleared in whole or in part. But the variations on the theme details are all to be seen. An alternative that would allow you to gain time in spite of the Ecb, however, this could be the takeover of the State – directly or through its emanations in the wake of the model and the Atlas – to the syndicate of the recapitalization, which is near to the airport. In this case, which goes well with the moves of the board of directors, you will help to force things to the direct intervention of the State only if the capital increase should fail, a circumstance that would require the entry of the guarantors. All assumptions, though. What is certain, at the moment, is that the ceo of Mps Marco Morelli and president of the institute, Alessandro Falciai, are in continuous contact with the first shareholder of the institute, the minister of Economy, Pier Carlo Padoan, who met Friday morning.
The protection for the small investors – One of the nodes in the most delicate, regardless of the intervention of the State, is the simultaneous preservation of the small investors. The injection of public money into distressed banks is allowed even after the entry into force of the bail if the institute is solvent, the capital needs may not be covered by recourse to the market, and holders of shares and subordinated bonds are called on to respond to the first, thereby reducing at least part of the expense that goes to fall on the taxpayers. The european rules however, as mentioned two days ago by the european Competition commissioner Margrethe Vestager, do not prevent refund the savers to whom they were sold securities which were not able to understand the risks. Something similar to what happened in the case of the rescue of Banca Etruria< /strong>, Banks Brands, Carichieti and Cariferrara, of which the bondholders are subordinated, have not wanted to access the flat-rate reimbursement, however, still await the decree on the alternative procedure, that of thearbitration. This decision remains in the hands of the national authorities. Another way suggested in the past few days for the Mps is that the Treasury directly purchase the bonds are subordinated, in the hands of the small savers. But in that case, we talk about 2 billion euro.
supervisory Board of the Ecb divided. Then they prevailed in spite of the "hawks" – with regard to the Ecb, the members of the council, chaired by Danièle Nouy, according to Reuters, were divided on whether to grant the institute the siena twenty days more than the deadline of 31 December expected to complete the strengthening of the balance sheet. Mps had asked for up to January 20, the time to have a new government or, as stated, attempt to revive the capital increase on the market, claiming that is required by the "changing environment" after the victory of the No to the constitutional reform and the resignation Renzi. Easy to imagine a harsh opposition on the part of the vice-president, the German Sabine Lautenschläger, known on positions contrary to the monetary policies that are favorable to weak Countries of the euro area. Other members feared that ” a no would have e xposed the Ecb to the accusation of having "pulled the plug" at the institute, doing potentially take a outflow deposits. The fact is that the decision was the latter and was widespread well before the timing provided by the Ecb to marry.
