Sunday, December 25, 2016

Mps, the Eu support to the State solution. Morelli: “My commitment continues” – The Republic

the MILAN - With the intervention of the State in the position of the Monte dei Paschi will strengthen and his ad, Marco Morelli, will continue in his work in siena. And it has insured the same manager to the employees, in a message that follows the long night before, following the failure of the share capital increase of 5 billion on the market, then the government intervene with the bottom 20 billion to the banking sector which the bank has asked for your help. By the european Union, instead, take note of the move of the government – with whom we are in constant contact even on the next plan of restructuring, and indicate that Italy can proceed to the rescue of the banks, provided that in res pect of the community rules in the matter. On the title Mps in the Bag, meanwhile, comes the congelamentoda Consob: it will be valid “until it is restored to a correct picture only”, after the bank’s request to access the State support for the recapitalization. It may last several days, as long as they do not pursue directions on the next industrial plan, and the details of the capital increase charged to the Treasury.

The Eu’s position. The Commission admits the possibility of recapitalisation of preventive, provided that you meet certain conditions. The Commission recalls that State aid is permitted without the follow-up to a resolution or bail-in of shareholders, bondholders and depositors if the bank is in trouble has been rejected at a stress test, like what happened to Monte dei Paschi. On these aspects, Brussels and other authorities will need to verify that there are conditions to proceed with the recapitalization prior. As for the protection of investors (in the case of Mps, it promises to be a conversion of the subordinated in the hands of the retail shares, 100% of the nominal value, and, therefore, the repurchase by the Treasury in exchange for senior bonds), the Commission specifies that it is possible to in case of mis-selling, i.e. the sale of securities to investors without appropriate disclosure on the risk of the investment. “We support the Italian authorities in the aim of further strengthening the Italian banking sector, in accordance with community law”, ensures a spokesperson for the european community. In the case of the banks at the centre of sales fraudulent, recapitalisation, “can ensure that there are no negative effects on retail investors”, but from the authority we expect concrete actions to stand up to the source of the problem” of these sales disrespectful of risk profiles, to avoid that from happening again.

As the shield to ensure liquidity, the spokesman noted that as early as June 2016 “, the Commission authorised a scheme of guarantees for banks which covers the measures to support liquidity in case of need”. The support to the liquidity to the banks suffering capital “must be approved individually”, and Italy has asked the Commission to authorize it”. The scheme lasts six months, and then Brussels “is in contact with the Italian authorities on the extension beyond the December 31.

Morelli goes on. :”The intervention of the state was definitely not the first option of the bank, however, we will still have the option to proceed with the disposal accelerated non-performing loans and have a different position and stronger,” he said Mark Morelli in a video message to employees. The intervention of the State, he added, will allow the Mps to restore a structure “with regard to the liquidity, in line with what was the position of the bank at the beginning of 2016″. After having emphasized the fact that they will be protected, the owners of the bonds 2008-2018, which the ceo himself – then in another role – he had arranged for the purchase of Antonveneta, Morelli said of himself: “my commitment continues regardless of what is the technical solution that the bank has chosen to undertake, and all of the energies that I have used in these weeks and in the three months since my arrival, will be even more and even more strong to try to lead the bank in a strong position, stable and able to finally return to do the job that belongs to her”. On the question of refreshment, the spokesman of the president of the Eurogroup, Jeroen Dijsselbloem, he wanted to clarify that “before the intervention of aid from the State is necessary for there to be the intervention of ‘bail-in’ of shareholders and bondholders junior as provided by the rules.”

reactions. a Positive comment at the initiative of the government, both by banks and by the unions. For the first side has talked about the Antonio Patuelli, president of Abi, for which “the decree of protection actually savers, and promotes the very stability of the banks, the essential conditions for a more robust recovery in growth and employment”. Emphasizing the “spirit of realism” of the occasion, the Abi gives “assessment mainly positive on the decree law for the protection of savings, both on state guarantees (costly for banks and will get) for liquidity, both for preventive interventions to strengthen the heritage of those who need to have according to the reviews and determinations of the bank of italy and ministry of economy and finance”.

From the front of the bank, according to the First-Cisl “the decree save-savings approved by the government puts the Monte Paschi finally in conditions to compete on the market”, and now “you use it also for the popular in veneto and for the 4 banks is the object of the resolution”. “Well the decree, but you had to do before” is the comment that comes from the Uilca, and also by the president of the Regione Toscana, the Rossi.

the Monte dei Paschi Foundation, a time strong partner of the bank, “currently holds a quota equal to 0.1% of the share capital, against a previous of 0.7%. In a statement, the agency explains that “in the uncertainty of the evolution of the events of the disposals allow us to limit almost all the risk capital of the Entity in respect of the occurrence of scenarios particularly adverse to shareholders.”

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