Cracks Show at World's Oldest Bank

Turmoil at the world's oldest bank. Italy's Monte dei Paschi is staring nationalisation in the face. It's main shareholder has delayed a vital cash call until May 2014. That's prompted a threat to quit by the bank's chairman Alessandro Profumo. And it's chief executive Fabrizio Viola. Both will decide in mid-January whether to stay on. Robert Cole from Reuters Breakingviews says the crisis has left the bank on shaky ground

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Monte Paschi Chairman And CEO Expected To Stay On As Board Meets
Monte dei Paschi di Siena's chairman and CEO are not expected to go through with a threat to quit on Tuesday, when the bank's board meets for the first time since its largest shareholder forced the delay of a vital share issue. On the agenda is the future of Chairman Alessandro Profumo and CEO Fabrizio Viola, who both threatened to resign last month after their proposal for a share sale in January was voted down.
Monte Paschi Board Says CEO To Stay On
The board of Monte dei Paschi di Siena has unanimously confirmed its faith in CEO Fabrizio Viola despite him being forced to delay a crucial capital increase, the bank said on Tuesday. Viola had threatened to resign last month after a shareholder meeting voted down his proposal to launch the 3-billion euro share issue this month.
Monte Dei Paschi Foundation Votes To Delay Sale
Shareholders in Monte dei Paschi di Siena, the world’s oldest bank, derailed a plan by management to raise urgently needed new cash, leaving the bank’s future in limbo and illustrating the conflict in crisis-ridden Italy between change and tradition. At a shareholders meeting Saturday, the charitable organization that owns about one-third of the bank’s equity, along with many smaller shareholders, blocked a plan to issue new shares in January to raise 3 billion euros, or $4.1 billion.
Monte Paschi Pushes Cash Call Vote to Saturday
It's survived more than five centuries but longevity can't help Italy's oldest bank with its latest setback. Monte dei Paschi's main shareholder - the Monte dei Paschi foundation - is threatening to delay a vital 3-billion-euro capital increase. Shareholder's were due to meet on Friday. But less than 50 percent turned up, forcing the troubled Italian lender to push the vote back to Saturday.
Daily Digit: Monte Paschi's Revival Plan
2.5 billion euros is today's daily digit - the extra capital Monte dei Paschi has agreed to raise to avoid nationalisation. The revised plan - the first one was rejected by EU regulators - includes cutting an extra 3,400 jobs. That takes the total losses to around 8,000. It must also make savings of 400 million euros in order to qualify for a European Commission bailout. The world's oldest bank came close to collapse last year due to the euro zone debt crisis.
Monte Paschi To Meet London Investors Over Cap Hike
LONDON/MILAN (Reuters) - Banca Monte dei Paschi di Siena will sound out foreign investors in London over the next few days to raise support for a hefty 2.5 billion euro ($3.37 billion) capital increase that the troubled Italian bank must complete next year.
Daily Digit: Monte Paschi's Damages Bid
1.2 billion euros is today's daily digit in Europe. It's the amount the world's oldest bank is reportedly seeking in damages after a derivatives trading scandal. Reuters has been told Monte dei Paschi will sue investment banks Nomura and Deutsche Bank, along with Giuseppe Mussari - a former chairman of Monte Paschi and Antonio Vigni - a former director.
Intesa Sanpaolo Rules Out Investment In Monte Paschi
The head of Intesa Sanpaolo said on Wednesday Italy's biggest retail bank was not planning to invest in troubled peer Banca Monte dei Paschi di Siena, which is set to carry out a 3 billion-euro capital increase next year. But it is fighting opposition from its biggest shareholder, a charitable banking foundation, which wants to have more time to seek a buyer for its 33.5 percent stake.
World's Oldest Bank in $1bln Trading Scandal
There were angry scenes in Siena as shareholders arrived for an assembly at the world's oldest bank. Italy's Monti dei Paschi was already seeking a 3.9bln euro bailout. But this week the Tuscan lender revealed a derivatives scandal could cost it a further 720 million euros. With elections just weeks away the case has become a political issue in Italy. The bank has links to the centre-left Democratic Party which is leading in the polls.
World's Oldest Bank Asks For Bailout
The world's oldest bank, Italy's Banca Monte dei Paschi di Siena is asking for a taxpayer funded bailout after making severe losses.
Daily Digit: Italy Banks in Numbers
4.1 billion euro's is today's daily digit -- the amount Monte Dei Paschi wants to raise in bailout bonds from the state. To avoid nationalistation the worlds oldest bank is drafting up a drastic restructuring plan. To meet EU standards it must boost capital by 2 and a half billion euros next year -- more than double what was orginally estimated by managers.
Monte Paschi Could Propose Scrapping 4 Percent Voting Cap Next Week
Monte Paschi could propose scrapping 4 percent voting cap next week; HTC to name new leaders soon; and Wells Fargo buying more bonds as rates rise.

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