MPS: Will our heroes be able to prevent the usual PD rule for the Banks?

3 August 20213 years ago babelfish

MPS is perhaps the most obvious example of how a political party in Italy has managed to undermine, practically by itself, the entire credit system of the country. There is very little left of the credit system between Bail Out, approval of Bail In, bailouts, zeroing, concentration regulations, as for the mutual banks. Now the last blow is being tried: giving the positive assets of MPS to Unicredit and keeping the scrap at the expense of the state.

The story is really funny, if ten billion Italians weren't dancing, and it shows how superficially and nonchalantly the bank has been governed even by its advertising in 2016. Here are a few points:

Orcel, the CEO of Unicredit, was leading the Merrill Lynch team when it brought about the devastating purchase of Antonveneta. Mussari tracted through Orcel with Emilio Botín, Santander, which resulted in the payment of 9 billion to the Spanish bank, plus the taking on of 7 billion in debt, and which was the move that finally broke MPS. Now this same CEO is seen as a key to saving MPS. In other countries, a public authority would not want to approach it even with pliers;
it seems incredible that the current president of the bank that is negotiating with the treasury for MPS, has made sure that the parliamentary seat of Siena is freed and made available to the current secretary of the PD, in what appears to be an exchange of favors between bank and politics. Among other things, the Sienese are treated as subjects who will still vote for the PD, despite the damage it has brought to the city, and the 5,000 layoffs promised by the merger.

All in a beautiful intertwining of consultants and investment banks that

it also involves pentastellates. It should be remembered that the majority of Unicredit's current shareholders are no longer Italian, to understand how much this affair is, in the end, only a damage for the state. MPS did not transform itself, as in the dreams of the M5S, into the “Public Investment Bank”, due to lack of will and capacity. However, from this to giving yet another handful of billions to a private bank, after the more than seven given to Intesa con le Venete. Now, for forty days, Draghi and Franco will discuss with UniCredit to evaluate the possible offer, but the best solution would be to ask the Commission for an 18-month postponement, to evaluate the real situation of the Institute, even after covid-19, and find a solution that, for the first time in its history, frees MPS from the damage of the PD. Whatever this solution is.

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The MPS article : will our heroes be able to prevent the usual PD rule for Banks? comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/mps-riusciranno-i-nostri-eroi-ad-impedire-il-solito-regaolo-del-pd-alle-banche/ on Tue, 03 Aug 2021 10:21:29 +0000.