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Monte dei Paschi: The Drama of Employees and Clients

Monte dei Paschi: The Drama of Employees and Clients

Monty Pashi. The time for respect has come. Respect for account holders first, for employees of the time and taxpayers, who inadvertently keep paying a bank that died some time ago. Yesterday, a wave of rumors led to a possible increase in capital, another increase, more than 3 billion euros.

This morning Sienna’s reissued press release which we present below.

Siena, August 21, 2021 – Referring to press reports indicating a possible capital increase of Banca Monte dei Paschi di Siena SpA (“the Bank”) in the amount of €3 billion, the Bank determines – at the request of the Consob – that this is reckless which is not reflected in any initiatives that the Bank is active .

On the other hand, the bank reported that UniCredit’s due diligence activities are continuing, in line with the latter’s press release on July 29 this year.

It really does feel like a never ending story. The endless chasm of Italian finance. We will know in just a few days whether the new capital increase of 3 billion for MPS will be present or not, however, the fact is that the situation in Monti is really exciting.

If someone wants to have fun doing it, just go to the official page of the institute at the link:

https://www.gruppomps.it/investor-relations/piano-industriale/piani-industriali-e-aumenti-capitale.html

We re-read the recent history of the absurdities that the Bank of Sienese has suffered over the years.

The capital increase and above all a reinterpretation of the industrial schemes of the past years shows that the distance between what was planned and what was achieved is so wide that no crutches are able to support the Bank any longer.

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Unicredit arrives, Fabi, the union is trying to save what can be saved.

But is there still something to save?

Even the historical brand will be gone, with the phrase “Banca dal 1472” attesting to its birth before any other bank in the world.

Face all the heroes of the story. What will happen to the branches? Most of them will be closed. What will happen to the employees? There will be thousands of extras needed.


What will happen to Monty customers?

I think this question must be answered before all others. MPS has more than 4.5 million customers. Many of these have survived despite everything, despite the risks of bail, despite the risk of bankruptcy. It’s like vaccines. People need clarity and confidence, when these situations are lacking, unimaginable situations arise.

It is necessary to clearly state and declare that the bank no longer exists. It no longer exists. EBA stress tests endangered:

“Italy’s MPS saw CET1 drop to negative 0.1% in the opposite scenario, the worst among the banks in the sample. The world’s oldest bank, still state-owned after the bailout, is now in negotiations for a takeover by Unicredit, it was announced last Thursday .

https://www.nicolaporro.it/economia-finanza/banca/monte-dei-paschi-la-peggiore-deuropa-agli-stress-test-bene-le-altre-italiane/

We must step in and do it quickly to save the savers, the taxpayers and the employees of the bank itself who find themselves in a terrible situation:

employees. They invested money in the institute (those who bought MPS stocks and bonds lost everything), found themselves taxpayers paying their share of the donations through taxes and would find themselves risking losing their jobs. They did a good deal. However, as Professor Bertelli wrote, the staff has been the real driver of the institute in recent years.

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https://www.nicolaporro.it/economia-finanza/banca/unicredit-mps-alcuni-conti-prima-delle-nozze/

the story.

The story of the Sienese Bank is one that has shown its worth and continues to burn. Recent EBA stress tests have once again highlighted the extreme difficulty of Tuscan Bank accounts. The situation can only be controlled thanks to state coverage, but even this, as we wrote about a year ago, is not easy to manage:

https://www.nicolaporro.it/economia-finanza/banca/bmps-si-complica-luscita-del-governo-italiano/

The situation will not be sustainable unless the White Knight arrives, probably today It is embodied by Unicredit. We’ll see what happens in the coming weeks, but state intervention to fix Monti’s situation and facilitate a bailout with Unicredit will increase costs.

https://www.nicolaporro.it/economia-finanza/banca/il-salvataggio-di-mps-costera-almeno-700-euro-a-famiglia/

budget losses.

“Over the past 10 years, the bank has accumulated losses of more than 23 billion euros, closing only two financial statements in profits: 2015 and 2018. Then a series of disastrous years: in 2011 it lost 4.69 billion euros, in 2012 from 3.16 billion, in 2014 from 5.398 billion, in both 2016 and 2017 to more than 3 billion until the last balance sheet for 2020 when the bank lost 1.6 billion euros.

In short, it’s time to make a point.

Providing savings is the priority, and shutting down the well is a national emergency.

Leopoldo Gasparo