If yesterday you could have written 5 billion from the market in order to stay afloat, now in the Monte dei Paschi, with the recapitalisation of the State, it takes almost 9, almost double. To determine the new requirements of the Mountain in 8.8 billion euro was the european Supervisory Authority at the Ecb, with a letter sent out yesterday evening at the top of the bank of siena.
A letter arrived a few hours after the request of the bank of avail, after the failure of the capital increase of the market, one of the "precaution" of the State. And that is likely to change the contours of the entire operation put in place by the government to support banks in difficulty. No one in the Monte dei Paschi, which in these days he worked elbow to elbow with the Treasure, he expected a similar request.
The government, after having allocated € 20 billion for the entire system, will have to investirne to Siena about 6.5, the maximum effort that had been hypothesized, in order to bring the capital the Mps to 8.8 billion requested by the Ecb. The conversion into shares of the subordinated bonds to institutional investors ($ 2.3 billion), will yield only 1.7 billion, and the Treasury will eventually have to sending in the refund of nearly all of the subordinated in the hands of the small investors (2 billion, but not all were deceived in the purchase).
The real problem is that the Ecb has used criteria of assessment of the needs of the banks that get public money in the framework of the directive on the sharing of risks (the burden-sharing) which is very penalizing: for Monte Paschi, the base is always that of the test on the seal sheet as of July, but the metro is the one used in the past for the Greek banks. Which does not seem a good sign for the banks that are in difficulties, for the system as a whole, the market and the coffers of the State.
Even if the move to Frankfurt will not surprise the bankers and the German economists, who have long urged the Ecb to the maximum rigor in assessing issues of Italian banks. “For the measures decided by the Italian government, the banks need to be financially healthy. The funds may not be used to cover losses already provided for” remembering yesterday, the president of the Bundesbank, Jens Weidmann. The european rules, in his words, “serve to protect the taxpayers and giving responsibility to the investors. The state funds for the banks are the last resource,” he added, urging “a careful examination” of the case with Mps.
Isabel Schnabel, member of the Council of economic experts of the government, went even further. “Given the profound problems of the Mountain, we can ask if a recapitalisation measure is truly appropriate. The authorities went so far as to say – should check carefully if the bank does not have to be liquidated gradually. Taxpayers ‘ money could be wasted.”
The Treasure some precaution he had also taken. The decree sets heavy conditions for public support to the banks. The stop to the dividends, purchase of investments, the prohibition on aggressive commercial practices, to advertise for public support. Up to the possibility of “withdrawal and replacement of the directors and of the director-general. Refunds to the small bondholders, in connection with a transaction that recognizes the sale illegal on the part of the bank, and the renunciation of all their other claims, are paid by the bank. But only formally.
December 26, 2016 (change on December 27, 2016 | 00:34)
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