Between crisis and restructuring the Monte dei Paschi di Siena has held the limelight for almost 15 years, starting with that purchase of Antonveneta in 2007 which coincides with the beginning of the crisis of the oldest bank in the world. Although for many the date must be brought forward to 2002 with the subscription by the then top management of the Santorini and Nota Italia operations, and then, in 2005, with the purchase of the Alexandria bond.
The shareholder state
Currently the Treasury – in negotiations with Unicredit – after the recapitalization in July 2017, is the majority shareholder of Mps with almost 70%, even if the restructuring plan provides for an exit from the capital.
L’Antonveneta operation
In November 2007, Mps unexpectedly buys the Antonveneta bank from Santander for 10.3 billion, paid by the Spaniards 6.6 billion a few months earlier.
The capital increase and Fresh
In 2008, the Bank of Italy shines a light on Fresh, the financial instrument that accompanied the capital increase to take over Antonveneta. In 2009 it was decided to sell the Alexandria shares to Nomura, which are causing huge losses. In exchange, Nomura spreads the ‘red’ over a period of thirty years and the bank books 1.9 billion of Tremonti bonds, promising repayment in 2012. In October, the Bank of Italy ” intensifies the screening of the bank’s liquidity ”.
Inspections by the Bank of Italy
In 2010 the Bank of Italy launched an initial inspection in Siena and asked Mps for a capital increase. In October, the ‘sweet commissioner’ is triggered with a request for daily liquidity updates. In 2011, in July, the MPS foundation subscribes pro-quota the capital increase of 2 billion euros. Meanwhile, the situation worsened with the spread crisis and in September the Bank of Italy launched the second inspection. In October via Nazionale asked for the discontinuity of governance. In November, the MPS Foundation has a billion in debt with the banks that financed the purchase of Antonveneta. To find an agreement, she is forced to sell various assets, including 15% of the bank. During 2012 it drops to 33% (in 2007 it was 56%). In March 2012 the second inspection ends with heavy findings.
The big loss leaves Mussari
The bank closes the 2011 financial statements with a maxi-loss of 4.69 billion. In April Giuseppe Mussari leaves the presidency, Alessandro Profumo is appointed in his place. In May, the Prosecutor’s Office of Siena opens an investigation into the Antonveneta case. In 2013, the scandal broke out in January and in November the bank will launch a 2013-2017 business plan, which includes a maxi-capital increase of 3 billion euros. In 2014 the bank closed with a loss of 5.3 billion. In 2015, after a new capital increase of up to 3 billion was launched, the Treasury became a shareholder of Monte as a payment of interest equal to 243 million euros for the Monti bonds purchased by the bank.
Failure of stress tests
In July 2016, with a collapse of Cet1 to -2.44%, Mps is the worst among the 51 banks of the Old Continent subjected to the stress test of the European Banking Authority. At the end of 2016, the government bailed out Monte with 5.4 billion (of which 1.5 in reimbursement to bondholders) under the 20 billion euro Salvabanche decree. In 2017 in July, the green light of the European Commission for the intervention of the State in the capital of Mps. The bank closes the balance sheets of its first year of normalization in the red by 3.5 billion euros. The following year it returns in profit of 279 million. In 2019 the Milan court sentenced Giuseppe Mussari to 7 years and 6 months in prison, Antonio Vigni to 7 years and 3 months and to 4 years and 8 months. In 2020, MPS sells 8.1 billion of impaired loans to Amco. Profumo and Viola are condemned on derivatives. Both are calling for a radical revision of the sentence. The year closed with the launch of a strategic plan that envisages a capital requirement between 2 and 2.5 billion euros to address the shortage of capital and the restructuring costs necessary to put the income statement back on track. 2,670 net redundancies are expected by 2025 and return to profit in 2023, after a balanced budget in 2022.
The missed wedding with Unicredit and the change at the top
The hypothesis of a wedding with Unicredit appears, but it jumps after a few months’ negotiations. Monte goes ahead on its own but in February the shareholder Mef decides a new change at the top and the CEO Bastianini, not without friction with Il Tesoro, leaves for Luigi Lovaglio. According to Minister Daniele Franco, the state confirms its intention to sell the stake but only after the capital increase to be carried out by 2022 and in any case “not selling off”. The bank closed the first quarter of the year with a 92% drop in profit to 10 million euros.
Source: Ansa
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