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Decline and close to fall of Italy’s Monte dei Paschi, the world’s oldest financial institution

MILAN, Oct 25 (Reuters) – A deal for the Italian authorities to promote Monte dei Paschi (BMPS.MI) to UniCredit (CRDI.MI)collapsed on Sunday after the 2 sides didn’t agree phrases. learn extra

That leaves Rome nonetheless struggling to discover a answer for the Tuscan lender it has spent billions of euros on because the 2008 monetary disaster.

Here is a timeline of key occasions within the latest historical past of Monte dei Paschi (MPS), whose origins will be traced again to the fifteenth century, which have made it the epitome of Italy’s banking nightmare.

NOVEMBER 2007 – MPS buys Antonveneta from Santander (SAN.MC) for 9 billion euros in money, simply months after the Spanish financial institution paid 6.6 billion euros for the Italian regional lender.

JANUARY 2008 – MPS publicizes a 5 billion euros rights subject, a separate 950 million euro capital improve reserved to JPMorgan, a 2.2 billion euro Tier2 bond subject and a 1.95 billion euro bridge mortgage to fund the Antonveneta deal.

MARCH 2008 – The Bank of Italy, led by Mario Draghi, approves the Antonveneta takeover topic to MPS rebuilding its capital.

MARCH 2009 – MPS sells 1.9 billion euros in particular bonds to Italy’s Treasury to shore up its funds.

JULY 2011 – MPS raises 2.15 billion euros in a rights subject forward of European stress check outcomes.

SEPTEMBER 2011 – The Bank of Italy offers 6 billion euros in emergency liquidity to MPS via repo offers because the euro zone sovereign debt disaster escalates.

MARCH 2012 – MPS posts a 4.7 billion euro 2011 loss after billions of goodwill writedowns on offers together with Antonveneta.

MAY 2012 – MPS headquarters searched as prosecutors examine whether or not it misled regulators over the Antonveneta acquisition.

JUNE 2012 – MPS asks Italy’s Treasury to underwrite as much as one other 2 billion euros in particular bonds.

OCTOBER 2012 – Shareholders approve a 1 billion euro share subject aimed toward new traders.

FEBRUARY 2013 – MPS says losses stemming from three 2006-09 derivatives trades quantity to 730 million euros.

MARCH 2013 – MPS loses 3.17 billion euros in 2012, hit by plunging costs on its giant Italian authorities bond holdings.

MARCH 2014 – MPS posts 2013 internet lack of 1.44 billion euros.

JUNE 2014 – MPS raises 5 billion euros in a deeply discounted rights subject and repays the state 3.1 billion euros.

OCTOBER 2014 – MPS emerges because the worst performer in Europe-wide stress assessments with a capital shortfall of two.1 billion euros.

OCTOBER 2014 – The former MPS chairman, chief govt and finance chief are sentenced to three-and-a-half years in jail after being discovered responsible of deceptive regulators.

NOVEMBER 2014 – MPS plans to boost as much as 2.5 billion euros after stress assessments outcomes.

JUNE 2015 – MPS raises 3 billion euros in money having upped the dimensions of its rights subject after a 5.3 billion euro internet loss for 2014 on file dangerous mortgage writedowns. It repays the remaining 1.1 billion euro state underwritten particular bond.

JULY 2016 – MPS publicizes a brand new 5 billion euro rights subject and plans to dump 28 billion euros in dangerous loans as European financial institution stress assessments present it could have adverse fairness in a hunch.

DECEMBER 2016 – MPS turns to the state for assist below a precautionary recapitalisation scheme after its money name fails. The ECB units the financial institution’s capital wants at 8.8 billion euros.

JULY 2017 – After the ECB declares MPS solvent, the EU Commission clears the bailout at a price of 5.4 billion euros for the state in return for a 68% stake. Private traders contribute 2.8 billion euros for a complete of 8.2 billion.

FEBRUARY 2019 – MPS swings to revenue in 2018 however says its up to date projections are beneath EU agreed restructuring targets.

OCTOBER 2019 – MPS completes Europe’s largest dangerous mortgage securitisation deal, shedding 24 billion euros in dangerous money owed.

FEBRUARY 2020 – MPS posts 1 billion euro 2019 loss.

MAY 2020 – CEO Marco Morelli steps down urging Rome to discover a associate for MPS. He is changed by 5-Star backed Guido Bastianini.

AUGUST 2020 – Italy units apart 1.5 billion euros to assist MPS as it really works to fulfill a mid-2022 re-privatisation deadline.

OCTOBER 2020 – MPS shareholders approve a state-sponsored plan to chop soured loans to 4.3% of complete lending. Under the plan Italy’s stake falls to 64% as a decree paves the best way for its sale.

OCTOBER 2020 – A Milan courtroom convicts MPS’ former CEO and chairman for false accounting in a shock resolution that forces MPS to spice up authorized threat provisions.

DECEMBER 2020 – MPS says it wants as much as 2.5 billion euros in capital.

DECEMBER 2020 – Italy approves tax incentives for financial institution mergers entailing a 2.3 billion euro profit for an MPS purchaser.

JANUARY 2021 – MPS says to open its books to potential companions.

FEBRUARY 2021 – MPS posts 1.69 billion euro loss for 2020.

APRIL 2021 – Andrea Orcel takes over as UniCredit CEO.

JULY 2021 – UniCredit enters unique talks with Italy’s Treasury to purchase “selected parts” of MPS, a day earlier than European banking stress check outcomes present the smaller financial institution’s capital could be worn out in a hunch.

OCTOBER 2021 – Talks with UniCredit collapse after the 2 sides fail to agree on how a lot the choose property of MPS are price. Rome is left needing to ask the European Union for an extension to its deadline for returning the financial institution to non-public possession.

($1 = 0.8593 euros)

Reporting by Valentina Za; Editing by Alexander Smith, Kirsten Donovan

A sign of the Monte dei Paschi bank is seen in Rome, Italy September 30, 2018.  REUTERS/Alessandro Bianchi/File Photo