Italy ON BRINK: Now THIRD Italian bank demands cash injection as it sinks in bad loans
ONE of Italy’s biggest banks held crisis talks today after it was told to raise money as the country’s financial troubles deepen.
By TOM PARFITT & MONIKA PALLENBERG
Express.co.uk
Mon, Jul 3, 2017
The European Central Bank has urged Banca Carige, which is based in the city of Genoa, to raise capital and shed bad loans.
But its restructuring has been delayed by a governance spat which led to the appointment of a new CEO last month.
Paolo Fiorentino took charge of the regional lender after a vote of no-confidence in his predecessor, Guido Bastianini.
Mr Bastianini reportedly fell out with Vittorio Malacalza, the bank’s top investor, before his dramatic departure.
Three board members have resigned since in disagreement.
Carige has lost nearly €2billion (£1.75bn) in the past four years because of big loan writedowns and slumping revenues.
The bank, the ninth largest in Italy, held a board meeting this morning to discuss its financial woes.
Italy’s Government put two banks, both based in the north-eastern region of Veneto, into liquidation last week.
In a controversial deal, retail bank Intesa Sanpaolo was handed €5.2bn (£4.5bn) to take on Banca Popolare di Vicenza and Veneto Banca.
And a €6.6bn (£5.8bn) state bailout for Monte dei Paschi, the world’s oldest bank, is expected to be finalised this month.
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