Carige: the multi-million dollar Malacalza lawsuit against the ECB. Road also open for the Venetians?
It had to happen sooner or later and it happens starting precisely from a major shareholder of one of the various banks sent into crisis by the ECB's supervision. Malacalza Investimenti and Vittorio Malacalza filed a lawsuit before the Court of Justice of the EU to order the ECB to compensate them for a total estimated damage of over 875 million euros for the "omissions of necessary interventions" and the "positive prejudicial conduct" relating to exercise of its supervisory functions over Banca Carige.
The entrepreneurial family was the first partner of the Ligurian bank with 27.5% until the commissioner ordered by the ECB at the beginning of 2019. Now the control is in the hands of the Interbank Fund.
Malacalza's accusation is stringent and could also be extended to the Venetian banks: first the ECB would have invited shareholders to heavy recapitalisations which then, almost automatically, the ECB was to write off through credit write-downs.
According to Liturri, the accusations made by the Malacalza, perfectly justified, are the following:
- “ He also complains that the ECB has carried out improper influences and interference in the Bank's governance processes ”.
- " The ECB is also criticized for having contributed to creating the conditions that the Authority itself placed at the basis of its unlawful decision to subject the Bank to Extraordinary Administration "
- The " illegality of the ECB measures that would have imposed the disposal of impaired loans, in an unjustified, disproportionate and in contrast with the principle of equal treatment and other principles "
- Finally, the "contrast, in various respects, of the conduct and measures of the ECB with the duties inherent to its supervisory functions, also in relation to safeguarding the sound and prudent management of banks " is denounced.
This lawsuit could trigger a real avalanche of similar injunctions against the ECB, which handled the Italian banking crisis in a really bad way in the four years from 2015 to 2019, with alternating moments of hardness and hope. A cure that has destroyed tens of billions of value, without achieving anything
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The Carige article : the multi-million dollar Malacalza case against the ECB. Road also open for the Venetians? comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/carige-la-causa-multimilionaria-dei-malacalza-contro-la-bce-strada-aperta-anche-per-le-venete/ on Thu, 06 May 2021 11:46:00 +0000.