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Decline and near fall of Italy's Monte dei Paschi, the world's oldest bank

Decline and near fall of Italy's Monte dei Paschi, the world's oldest bank
Decline and near fall of Italy's Monte dei Paschi, the world's oldest bank Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
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By Valentina Za

MILAN - State-owned Monte dei Paschi di Siena (MPS) on Thursday announced a 2.5 billion euro ($2.6 billion) cash call under new Chief Executive Luigi Lovaglio.

Here is a timeline of key events in the recent history of MPS, whose origins can be traced back to the 15th century.

NOVEMBER 2007 - MPS buys Antonveneta from Santander for 9 billion euros in cash, just months after the Spanish bank paid 6.6 billion euros for it.

JANUARY 2008 - MPS announces a 5 billion euros rights issue, a 950 million euro capital increase reserved to JPMorgan, a 2.16 billion euro Tier2 bond and a 1.56 billion euro bridge loan to fund the Antonveneta deal.

MARCH 2008 - The Bank of Italy, led by Mario Draghi, approves the Antonveneta takeover.

MARCH 2009 - MPS sells 1.9 billion euros in special bonds to Italy's Treasury to shore up its finances.

JULY 2011 - MPS raises 2.15 billion euros in a rights issue ahead of European stress test results.

SEPTEMBER 2011 - The Bank of Italy provides 6 billion euros in emergency liquidity to MPS as the euro zone sovereign crisis escalates.

MARCH 2012 - MPS posts a 4.7 billion euro 2011 loss after billions of goodwill writedowns on deals including Antonveneta.

MAY 2012 - MPS headquarters searched as prosecutors investigate whether it misled regulators over Antonveneta.

JUNE 2012 - MPS asks Italy's Treasury to underwrite up to another 2 billion euros in special bonds.

OCTOBER 2012 - Shareholders approve a 1 billion euro share issue targeting new investors.

MARCH 2013 - MPS loses 3.17 billion euros in 2012, hit by plunging Italian government bond prices.

JUNE 2014 - MPS raises 5 billion euros in a rights issue and repays the state 3.1 billion euros.

OCTOBER 2014 - MPS emerges as the worst performer in Europe-wide stress tests.

JUNE 2015 - MPS raises 3 billion euros in cash after a 5.3 billion euro net loss for 2014 on record bad loan writedowns. It repays the remaining 1.1 billion euro state underwritten special bond.

JULY 2016 - MPS announces a new 5 billion euro rights issue and plans to offload 28 billion euros in bad loans as European bank stress tests show it would have negative equity in a slump.

DECEMBER 2016 - MPS turns to the state for help under a precautionary recapitalisation scheme after its cash call fails.

JULY 2017 - After the ECB declares MPS solvent, the EU Commission clears an 8.2 billion euro bailout which hands the state a 68% stake at a cost of 5.4 billion.

OCTOBER 2019 - MPS completes Europe's biggest bad loan securitisation deal.

MAY 2020 - CEO Marco Morelli steps down and is replaced by 5-Star backed Guido Bastianini.

AUGUST 2020 - Italy sets aside 1.5 billion euros to help MPS as it works to meet an end-2021 re-privatisation deadline.

OCTOBER 2020 - A Milan court convicts MPS' former CEO and chairman for false accounting in a surprise decision that forces MPS to boost legal risk provisions.

FEBRUARY 2021 - MPS posts 1.69 billion euro loss for 2020 as it opens its books to potential buyers.

JULY 2021 - UniCredit enters exclusive talks to buy "selected parts" of MPS, a day before European banking stress test results show the latter's capital would be wiped out in a slump.

OCTOBER 2021 - Italy's talks with UniCredit collapse.

FEBRUARY 2022- Restructuring veteran Luigi Lovaglio named CEO.

MAY 2022 - Overthrowing a previous ruling, appeals court acquit all 13 defendants, as well as Deutsche Bank and Nomura, over derivative deals with MPS.

JUNE 2022 - MPS announces a 2.5 billion euro capital increase for end-October and secures a pre-underwriting accord with banks.

($1 = 0.9493 euros)

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