Wednesday , January 20 2021

The market fears that a bank may be in a difficult situation. The parachute opens at Carige



A rescue network opens up for Carige, the leading institution in the past for some time, and that by December it has to find new funds at the request of the ECB and then join another bank. Support will come from the Voluntary Interbank Fund, a private entity involving Italian banks, even though it was born out of the Fitd bank established by the Deposit Protection Law of up to 100,000 Euros. In fact, the creation of the Volunteer Fund in recent years has been the motivation to support banks in crisis, avoiding Fitd's immediate action, which Europe equates to state aid. The intervention of the Voluntary Fund – with a breakdown of between EUR 220 and 370 million for the guarantee of a Carige secondary bond – would serve to cover the capital of the Genoa Bank, chaired by Pietro Modiano and led by Fabio Innocenzi, a conflict between of the shareholders who saw the Malacalza family still prevail, a 28% shareholder. The reason to avoid the risk of a new banking crisis that would be disastrous for the credit system and for the government, which is already being pushed between a 300-point length – unviable for a long time, as Yovanni Three, the rejection of the maneuver by the European Commission. Carige and Popolare di Bari have no problem or risk of failure, made Tria clear on October 31st. However, the Liguria bank has a capital problem identified by the ECB in June. We need at least 200 million in subordinated bonds – the first to zero after stocks in case of resolution – to respect the total capital levels (the total capital ratio). The ECB's stress test was added to this deficiency. The result is not public, but the bank will fall below the minimum legal requirement of 5.5% of the assets. Therefore, it is necessary to establish whether the debt is to be relied on or whether a capital increase should be used, after the 550 million that came into force in December 2017 among many difficulties. On that occasion, a public vehicle had to intervene, SGA, a 100% bad Treasury bank, with 5% of the capital being set at 1 cent per share. Carige is currently worth $ 206 million and the stock is lowered to infinitely low levels: € 0.0037, -80% in eleven months. Malacalza should be registered for about 50 million bond, one share could get the financier Raffaele Mincione, 5% shareholder, the rest will go to the Fund. The percentage will be high, about 10%, but still less than 20% that should be offered on the market, provided that they are the investors. In the spring the bank tried to issue the bond but did not find insurers. Carige will address the matter tomorrow to the board, who will also request quarterly statements. Always on Monday, around noon, Fitd will have to meet, whose leaders worked yesterday, to discuss the investment of the bridge. Once again, healthy banks will take on those facing difficulties, increasing the cost of banking system crises, which is estimated by ABI to over 12 billion in three years. Private, non-public money.

10 November 2018 (amendment 10 November 2018 | 23:02)

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