The fall of a bank is in addition to the political crisis in Italy – LaCapital.com.ar

the political crisis in Italy added another major concern. The shares of the Italian bank Monte dei Paschi di Siena (MPS), the third-party bank Italian, were temporarily suspended in the Bag after sufir heavy losses in the course of the day. Monte dei Paschi is the oldest bank in the world. Your cap value,

it Is that the European Central Bank (ECB) has rejected the desperate request of the Italian bank to have more time to be able to complete a bailout plan, and raising capital for almost 5,000 million euros. Monte dei Paschi said it is precisely to the political crisis unleashed with the resignation of premier Matteo Renzi as the cause to ask for an extension to the ECB. The European Central Bank, chaired by the Italian Mario Draghi, is not granted the extension. Now, the Italian State must intervene in the age-old banking institution of Siena. The MPS was attempting to complete a recapitalization of 5,000 million euros to the end of the year, but his management has asked to prolong the deadline until the 20th of January, because the political crisis in italy is driving away potential investors.

The first Renzi resigned this week after the constitutional reform that was driving was rejected in a referendum last Sunday. Italian media reported that the president of the MPS, Alessandro Falciai, and the chief executive officer Marco Morelli had a meeting with the minister of Economy outbound, Pier Carlo Padonan, and officers of JP Morgan and Mediobanca, two banks that are working on the recapitalization plan.

the collapse of The MPS has a dual effect on the political crisis: in the first place was to become the main emergency of the next government that will replace Renzi, especially taking into account that the outgoing administration had ready a decree for the rescue of the bank of Siena. In addition, the crisis of the MPS could cause an eventual drag from the rest of the banking system. The problems of the MPS are not new: it is found in a process of profound restructuring since the crisis of 2008. It was the only bank that fell below the minimum values required for 51 european banks tested by the European Banking Authority last July. Were the much-criticised “stress tests”, which were considered to be too benign. Even so, the bank of Siena could not overcome.