Mps, rising to 8.8 billion request the Ecb to increase capital – The Sun 24 Hours

Failed to increase the market by 5 billion, to the Monte dei Paschi could approach an increase in the responsibility of the State (and the bondholders) 8.8 billion. According to what I learned from The Sun 24 Hours from multiple sources, this is the content of the letter sent in the afternoon by the regulatory authority of Frankfurt after that last week the bank had initiated the process for the recapitalisation of precaution foreseen by the decree save saving.

there’s an Evident difference with respect to the needs of 5 billion is still endorsed by the Ecb on the 23 November, on the eve of the extraordinary assembly of the Mount, which had approved the increase. The amount would have been revised, it is learned, according to the results of the stress of July, evaluated, however, in the light of the treatment of his time to Greek banks: of the 8, 8 about 4, 5 would be directly borne by the State, the other 4, 3 of the bondholders (with approximately 2 billion refundable, however, always from the State to the bondholder retail). In the evening, it would be expected a board of directors.

Mps, the “load” of the more than 100 bond suspended

Just today, in anticipation of an interview which will be published tomorrow the German newspaper Bild, the president of the Bundesbank Jens Weidmann had called for caution in the judgment on the rescue of the Mps. “For the measures decided by the Italian government, the banks must be financially sound, to the level of core. The funds may not be used to cover losses that are already covered”. According to Weidmann, the risk is that there is a strong economic turbulence. “All of this needs to be carefully examined”. Weidmann explains that european standards provide for the saving of the State as a last resort to help banks in difficulty. These rules “serve to protect the taxpayers and giving responsibility to the investors. The state funds are as a last resource.”

Still more explicit Isabel Schnabel, professor of economics of financial markets at the University of Bonn, a member of the Sachverstaendigenrat, the Council of Economic Experts of Germany, the so-called “Five wise men”: “The problems of MPS long-standing and solutions have been delayed for too long. It is very important that this issue is finally addressed. Having regard to the profound problems of the Mps, he continued, we can ask if a recapitalisation measure is truly appropriate. The supervisory authorities should carefully check if the Mps does not have to be liquidated gradually. Otherwise, taxpayers ‘ money could be wasted. Also, any injection of public money should provide that the government take control and start a deep restructuring of the bank. In any case, according to Schnabel, any solution must respect the rules of the directive, BRRD, including the bail-in of creditors”.

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