Mercoledì, 19 Settembre 2018

Mayor says MPS future set in next 6 months


Siena, August 16 - The future of troubled Monte dei
Paschi di Siena (MPS) bank will likely be decided over the next
six months, the mayor of the Tuscan city where the bank is based
warned Friday.
"The next six months are crucial to save the bank," Bruno
Valentini told a news conference held before the historic Palio
horse race in the city's iconic Piazza del Campo.
The mayor noted that MPS lost 350 million euros in the
first half of this year, making the remaining six months of the
fiscal year crucial for its future.
Although efforts have been made to deal with the crisis at
the world's oldest operating bank, it has not yet been enough,
particularly given the longstanding stresses in the
recession-plagued Italian economy, said Valentini.
"Today the bank is still sick because a bank that closes
with losses of 350 million euros in the first half, it means
that it is still ill and still is not able to defend itself
sufficiently from the disease in the Italian economy".
The bank has been waiting for European regulators to
approve its latest restructuring plan presented in June.
It has also been selling assets, cutting branches and
trying to return to profitability to avoid defaulting on
government bailout funds.
Earlier this year, MPS became embroiled in scandal amid
massive losses and political furore over the previous Italian
government's 3.9-billion-euro bailout plan to cover its capital
needs, which also threatens the bank with State control should
it default.
Investigations into the bank began early this year after it
emerged that a previously undisclosed series of derivative and
structured-finance deals produced losses of around 720 million
euros for MPS.
Senior officials from MPS are facing penalties totalling as
much as five million euros from the Bank of Italy for alleged
fraud and corruption.

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