A focused study group for the discussion of economics and economic policy.
32023 Members
We'll be adding more communities soon!
© 2020 Relevant Protocols Inc.
A focused study group for the discussion of economics and economic policy.
32023 Members
We'll be adding more communities soon!
© 2020 Relevant Protocols Inc.
Relevant
Hot
New
Spam
Relevant
Hot
New
Spam
0
40.4
0
40.4
The World’s Oldest Bank Faces Yet Another Reckoning Rome is sounding out UniCredit about buying a stake in Monte Paschi. Italian taxpayers may end up the victims again. After a decade of scandals and multiple bailouts, Banca Monte dei Paschi di Siena SpA is back in the spotlight. This time, the Italian government is shopping around the 1.5 billion-euro ($1.7 billion) lender ahead of a European Union deadline for Rome to exit the bank next year. Loaded with legal risks that dwarf its market value, any investor will be loathe to buy Monte Paschi with those liabilities — not least in the midst of a pandemic. The risk to Italian taxpayers is that Rome offloads its majority stake in the world’s oldest bank at any cost. A sale to UniCredit SpA, as is being discussed, might solve Italy’s immediate problem of meeting the EU deadline, but the bigger bank would demand strong financial guarantees. A Paschi merger would also make it harder for UniCredit to pursue more compelling deals.
The World’s Oldest Bank Faces Yet Another Reckoning Rome is sounding out UniCredit about buying a stake in Monte Paschi. Italian taxpayers may end up the victims again. After a decade of scandals and multiple bailouts, Banca Monte dei Paschi di Siena SpA is back in the spotlight. This time, the Italian government is shopping around the 1.5 billion-euro ($1.7 billion) lender ahead of a European Union deadline for Rome to exit the bank next year. Loaded with legal risks that dwarf its market value, any investor will be loathe to buy Monte Paschi with those liabilities — not least in the midst of a pandemic. The risk to Italian taxpayers is that Rome offloads its majority stake in the world’s oldest bank at any cost. A sale to UniCredit SpA, as is being discussed, might solve Italy’s immediate problem of meeting the EU deadline, but the bigger bank would demand strong financial guarantees. A Paschi merger would also make it harder for UniCredit to pursue more compelling deals.
Some low-ranking comments may have been hidden.
Some low-ranking comments may have been hidden.