Because Mps alone has no future

13 February 20222 years ago babelfish

Because Mps has its destiny sealed. The analysis of the economist Alessandro Penati for Domani Quotidiano

The same goes for Mps. A bank in crisis is like an expired yogurt: the more time passes, the more rancid it becomes. A bank sells homogeneous products and services, and if it loses a customer at a critical stage, it is almost impossible for it to recover or steal it from the competition.

In this situation, Mps does not have a future on its own, all the more so having to place third party products because, trying to survive, it has sold its product companies. An irreversible situation: the more time passes, the less Mps is worth.

The state, the controlling shareholder, is aware of the negative value of Mps: between preventive capital increases, deferred tax assets , redundancy buffers and the purchase of non-performing loans at prices higher than the market, a buyer has to pay for it to take it.

But the "gift", or "dowry", which Unicredit requested after looking into the bank accounts was indigestible. Unicredit, being the only possible buyer, and not being a charity, had the knife on the side of the handle in a one-way negotiation; but it is also true that the directors of MPS, appointed by the Treasury, had evidently represented to their shareholder a sweetened situation of the bank.

So the Treasury is doing well to remove the current council and its leaders to replace it, hopefully, with one that quickly makes the necessary restructuring to make less bitter the medicine that the state will have to swallow anyway.

Also in this case, the government must hurry before the parties stand together to defend the autonomy of MPs, postponing the showdown at the expense of public finances. And we are already beginning to hear, in the distance, the noise of politics.

(Extract from an article published in Domani Quotidiano )

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/mps-futuro/ on Sun, 13 Feb 2022 14:27:50 +0000.