During the year end, there has not been a single day when the banks appeared not starring in some scandal. Be it the manipulation of interbank interest rates, fraudulent loans, its executives millions in commissions or bankruptcies triggered by toxic assets. The financial settlement, the hash and predation are joined to the process of concentration of capital that leaves assets in fewer and fewer hands. This does not escape the oldest bank in the world, since it began to operate fully with all financial engineering instruments devised by Goldman Sachs in the 90s, falling into the trap like so many others. From this we realized in this February post where we note the secret loans involving Mario Draghi and Deutsche Bank with Monte dei Piaschi Di Siena, bank founded in 1473, three hundred years before there was the unified Italy we know today.
This bank received a secret rescue by Deutsche Bank of 1,500 million euros at the beginning of the crisis in 2008 and then two Italian government bailouts in 2009 and 2010 of 2,400 million euros. According to executives, it urgently requires 3,000 million euros to escape bankruptcy and build a machine to raise any new money to avoid bank nationalization by the government. However, the Monte dei Paschi foundation rejected the issuance of shares planned for early January, postponing it until mid-May, when it expects its current president, Alessandro Profumo and vice-president Frabizio Viola to resign. The Foundation wants to buy time to sell its 33.5 percent stake in the BMPS, or raise money from local investors to enable it to pay its own debts.
The Monte dei Paschi Foundation controls the bank for years and distributes its profits to local charities and civic organizations. Profumo and Viola noted that the bank would go bankrupt if a quick sale of shares is not performed in January. But 80 percent of shareholders voted in favor of the proposal of the Foundation expected to issue shares up to May and act without haste required by Profumo who is not afraid to leave the bank in foreign hands.