Category: Italy

Italy’s $21 Billion Bank Rescue Fund Is Sufficient, Visco Says

Italy’s 20 billion-euro government rescue fund is sufficient to recapitalize the country’s troubled banks, and about a third of money will be used for Banca Monte dei Paschi di Siena SpA, Bank of Italy Governor Ignazio Visco said. “This measure is an important one for Italy as it emerges from the crisis that buffeted its economy and banking sector,” Visco, a member of the European Central Bank Governing Council, said on Saturday in a speech at the annual Assiom-Forex conference in Modena, near Bologna.

Intesa Weighs Generali Deal That Would Reshape Italy Finance

Intesa Sanpaolo SpA said it’s considering a merger with Assicurazioni Generali SpA, a deal that would reshape Italy’s financial industry by combining its second-biggest bank and largest insurer. “Possible industrial combinations with Assicurazioni Generali are currently being examined by the bank’s management,” Intesa said in a statement late Tuesday.

Italy to Meet Alitalia Executives as 1,600 Job Cuts Said to Loom

As the new Italian government of Paolo Gentiloni hammers away at a rescue plan for beleaguered lender Banca Monte dei Paschi di Siena SpA, it’s suddenly contending with another corporate crisis: the future of Alitalia SpA. Executives from key investor Ethiad Airways and Alitalia — which went bankrupt in 2008 after rescue attempts involving the state and private investors failed, and which teetered on the brink of collapse in 2014 — are set to meet Italian ministers on Monday, the carrier based in Abu Dhabi said in a statement Sunday.

Paschi Said Failing to Lure Investors as State Readies Aid

Banca Monte dei Paschi di Siena SpA will probably fail in its effort to raise 5 billion euros of funds from money managers and individuals as potential anchor investors balk and few bondholders agree to swap their notes into stock, said people with knowledge of the matter. Qatar’s sovereign-wealth fund, which had considered an investment, hasn’t yet committed to buying shares, while a second debt-for-equity swap has raised about 500 million euros through Tuesday, a day before it expires, said the people, who asked not to be identified because the matter is private.

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Paschi Seeks State Aid as Italy Sets $21 Billion for Banks

Italy’s government is set to rescue Banca Monte dei Paschi di Siena SpA after the world’s oldest lender failed to raise 5 billion euros from the market, in what will be the country’s biggest bank nationalization since the 1930s. Italy will plow as much as 20 billion euros into the country’s banks providing both emergency liquidity guarantees and capital injections, as more lenders may seek lifelines soon.

Monte Paschi’s Fatal Sin Brings Nationalization for Oldest Bank

On the afternoon of Dec. 9, Marco Morelli, chief executive officer of Banca Monte dei Paschi di Siena SpA, was preparing for a board meeting in the lender’s Belle Epoque-era offices in Milan when the news hit: the European Central Bank had rejected his bid for more time to raise the 5 billion euros needed to stay afloat. The gathered executives and their advisers from JPMorgan Chase & Co.

Paschi Drops Private Fundraising, Paving Way for State Aid

Banca Monte dei Paschi di Siena SpA, the world’s oldest lender, abandoned plans to raise 5 billion euros from the market, making a state rescue likely. Monte Paschi failed to lure sufficient demand from investors in a share sale that ended Thursday, the Siena-based bank said in a statement after the market closed.

Paschi Falls as Buyers Said to Balk, Making State Aid Likely

Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a 5 billion-euro capital raise, said people with knowledge of the matter, making a state rescue likely. No anchor investor has shown interest in the recapitalization so far, the Siena-based company said in a statement late Wednesday after a board meeting.

Italy Paves Way for a $21 Billion Aid Plan for Ailing Banks

The Italian government moved closer to a potential rescue of lenders including Banca Monte dei Paschi di Siena SpA by seeking permission from parliament to increase the nation’s public debt by as much as 20 billion euros . The plan is aimed at providing a backstop to the banking system “through public guarantees in order to restore their short- and medium-term lending ability,” Finance Minister Pier Carlo Padoan said following a cabinet meeting Monday night.

Italy Paves Way for a $21 Billion Rescue Plan for Ailing Banks

The Italian government cleared the way for the potential rescue of lenders, including Banca Monte dei Paschi di Siena SpA, by seeking permission from parliament to increase the nation’s public debt by as much as 20 billion euros . Monte dei Paschi Chief Executive Officer Marco Morelli is scampering to find investors to back a private 5 billion-euro capital increase, which also includes a share sale and a debt-for-equity swap.

Monte Paschi to Start Share Sale in Effort to Avert State Rescue

Banca Monte dei Paschi di Siena SpA will begin taking orders for shares Monday as it aims to complete raising 5 billion euros by the end of the year to avoid a rescue by the Italian government. Monte Paschi will sell stock to institutional investors through Thursday, while the offer for retail investors will end on Wednesday, the Siena, Italy-based bank said in a statement Sunday.