The european banking regulator has rejected the request of Banca Monte Paschi di Siena to raise the 20-day deadline to close the capital increase from 5 billion.
The decision, communicated in the form of a "draft decision", should be subject to the approval of the Governing Council of the Ecb, which, however, hardly will any objections with respect to the assessments of the board of the Ssm. At this point, then the recapitalization by 5 billion will have to happen within the next 31 December, as per the commitments made between the bank and Frankfurt. And the solution that promises to keep the most ancient bank in the world is that of nationalisation.
private Investors out of the game
The move of the european Supervision was in the air. Frankfurt did not consider that a 20-day extension was sufficient to change the framework of the uncertainty created after the constitutional referendum. The bank, together with the advisor and with the blessing of the Government Renzi, had tried to get on track to a plan of recapitalization with private capital, which was pin on the participation by anchor investor. Subjects who now, in the face of the absence of a partner clear to the Government, are thinking about what to do.
The board of directors and the summit of the Treasury
that’s why in the meantime, the Mps has taken the so-called plan B, which involves the intervention of the state in the capital city. In this framework, this morning, the vertices of Banca Mps were received by the minister, Pier Carlo Padoan. To accompany the chief executive officer Marco Morelli, is also the advisor and lead manager of the consortium of Jp Morgan and Mediobanca. The meeting was planned to take stock of the situation. As it turns out, the Treasury is working on a measure that would essentially “ready to be launched, where it was necessary to”, as reported yesterday by Il Sole 24 Ore Radiocor Plus.
Originally planned in the week-end, the measure could however be put on the track next week, once it took office the new government and chiaritosi the framework. The scheme includes a recapitalisation of precaution”, as referred to in article 32 of the directive on bail-in (Brrd): there are several possible scenarios, ranging from the granting of a state guarantee on new issues at the injection of its own funds. The scheme more realistic, however, is that the intervention of the State to be subject to conversion into shares of bonds, subordinated in the hands of the institutional investors, while it is important to understand how they can be restored to the owners of the bonds to retail who hold the bonds subject to conversion.
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The effects on stocks and bond
The possible intervention bond subordinated explains the trend in the Bag of some of the subordinated bonds that may be called on to contribute to saving through a conversion to shares: subject Tier2, with a maturity in September 2020 has lost 11% on the Mot, 54,55, while the bond to 2,16 billion ended up in the hands of the savers retail has lost 8.2%, a quota 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). Heavy also the title of the Mps, after being stopped at auction for a decrease of 11,42%, closed the day 10.55% to 19.5 euros in trade, equal to 2.25 million units, equal to 7.7% of the share capital.
The board of directors of Mps
the bank, for its part, is working on next steps. In these hours it is holding a board of directors that should take note of the refusal of the Ecb, and to examine the situation, in the light of the impossibility to increase from 5 billion euros through a market solution. The president of Mps, Alessandro Falciai, on entering the headquarters of the bank in milan, has responded “absolutely no” to anyone who asked him if he was worried about the situation after the rejection of the Ecb.
Plan B ready and “frozen” measures possible in the week-end
the reaction of The Fabi
“If it were to be confirmed the Ecb’s decision not to grant Mps to the extension for the capital increase, we would be in front of a position of irresponsible, insane, arrogant, to the limits of provocation”. Said Lando Maria Sileoni, general secretary of Fabi, the union of majority of workers in banking. “I’m dancing in the destinies of 26mila employees and their families, and more than 5 million customers. At this point, it becomes necessary to be appointed immediately a new Government, and which above all remains the minister of the Economy Pier Carlo Padoan, the only one who could handle a situation that is so complex and difficult and that it may, together with the chief executive officer of Mps, Marco Morelli, and succeed by the end of the year to gather investors to recapitalise the group with 5 billion euros. In front of yet another closed attitude on the part of the Ecb concludes, Prometheus – it wo uld be desirable that the Italian political forces to do a common front, because if it falls in the group of Mps it will not go in a crisis, only the banking sector but the entire economy of our Country.”
@lucaaldodavi
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