A resounding rejection by the ECB against Banca Carige which further complicates the position of a bank already grappling with a fiery internal battle that caused four illustrious exits in a few weeks: after the resignation of the president Giuseppe Tesauro and the directors Stefano Lunardi and Francesca Balzani, also Vittorio Malacalza (first shareholder of Carige with 20% of the capital) has decided to leave the board of directors and the position of vice president.
On 20 July another tile hit Banca Carige: the European Central Bank rejected the capital conservation plan presented a month ago by the Ligurian institution. A decision that inevitably weighs on the performance of the stock today: at 10.30 the shares are in deep red (-5,8%) at 0,0081 euros.
The ECB's analysis leaves no room for misunderstanding. According to what is written in the letter sent to Carige, none of the risk reduction measures "were implemented within the initial timescale and the updated Capital Conservation Plan postponed their expected implementation by a quarter". Carige says that in the six months it “started the process aimed, on the one hand, at the issue of class 2 capital instruments (subordinated bonds) and on the other, at the sale of non-strategic assets.
The Eurotower therefore made two requests. The first provides for the presentation, by 30 November, of a new plan “approved by the board of directors to sustainably restore and ensure compliance with capital requirements by 31 December at the latest. Such a plan should evaluate all options, including a business combination." The institute lets it be known that "it will respect all legitimate deadlines indicated by the ECB while emphasizing that obviously it will be the Bank's responsibility to submit its observations on the entire draft decision".
The second instead concerns the bank's internal vicissitudes: After expressing concern about the latest developments in governance, the ECB asked Carige to convene a shareholders' meeting to proceed with the appointment of the new president by the end of September. In fact, Frankfurt calls for a "strong leadership to overcome the existing differences and ensure that the board of directors aligns itself with the necessary strategic decisions". Carige for its part confirmed that the board of directors of August 3 will convene the meeting in question for the month of September.
