Mps throws in the towel. The Sienese bank communicated that the capital increase operation, launched on Monday 19 December, did not close successfully. In fact, insufficient investment orders have been collected to reach the sum of 5 billion euros, necessary to allow the deconsolidation of the NPLs and the achievement of the other capital strengthening objectives set at the basis of the operation announced last October 25th as well as the authorizations received by national and supranational supervisory bodies.
Above all, large international investors, such as the Qatari fund, missed out on the recapitalization appeal: now presumably the missing part will have to be covered by the Treasury. The State will have to contribute about half of the necessary amount, given that the voluntary conversion of subordinated bonds into shares has stopped at 2.451.224.000 euros. Consequently, the investment banks (JP Morgan and Mediobanca) will not receive any commission.
Today, Piazza Affari, Monte dei Paschi's stock was once again in the eye of the storm: it lost more than 7%, falling to 15,08 euros.
In the face of this market failure, the State intervened by virtue of the decree, approved in the evening by the Council of Ministers which makes a 20 billion euro shield available to banks in difficulty. The Treasury thus becomes master of the Monte again and retail customers will be 100% protected. The decree will also make it possible to provide liquidity and capital to other banks in difficulty such as Popolari Veneto and Carige.
