Acquitted because the fact does not exist: this is the decision of the Court of Appeal of Milan which radically overturned the first instance sentence of 2020 which had condemned the former leaders of Ps Alessandro Profumo (president at the time) e Fabrizio Viola (CEO) e paolo salvadori (president of the board of statutory auditors). On that occasion Profumo and Viola were sentenced to 6 years in prison and a fine of 2 and a half million euros, while Salvadori received a sentence of 3 and a half years. Furthermore, the same bank was sanctioned with a fine of 800 thousand euros. This verdict was about the trial for false accounting and market manipulation, focused on the investigation into the accounting of the Santorini and Alexandria derivatives. The Court of Appeal issued the acquittal due to the lack of evidence to support the charges.
Mps trial: Tana frees everyone
So from everyone condemned to everyone acquitted. The verdict marks a clear reversal in the financial and legal fortunes of the Sienese bank, starting from ruling of the Supreme Court last October, which declared "inadmissible" the appeal of the Milan Public Prosecutor's Office against the acquittals of all 15 defendants for the alleged irregularities in the Alexandria and Santorini, Chianti Classico and Fresh structured finance operations carried out by MPS between 2008 and 2012. Between those acquitted include the former president of MPS Joseph Mussari and former general manager Antonio Vigni, initially sentenced to 7 years in the first instance in 2019.
The stock jumps on Piazza Affari and MPS looks at the banking risk
After the sentence, I sprint in MY BAG of the title Monte dei Paschi which recorded an increase of more than 3%. The bank can now proceed to reduce the provisions previously foreseen to meet damage claims. It is estimated that this reduction in provisions may be significant to around 200 million euros, which can be reinvested in other strategic areas or used to improve the overall financial stability of the institution. In addition to the possibility of reducing provisions, the bank also saw the cancellation of the financial penalty previously imposed. This aspect reopens the games on bank risk and leaves various options to the Treasury. Now the public share has fallen to around 39% and it is increasingly possible that next year it will be further reduced, in a repeat placement. Having a high wealth is a key factor for the Mef to be able to sell the Sienese bank without a "public endowment".
MPS: next stages of the process
Despite the acquittal, the legal process is not concluded. A third line remains on the adjustments of 11 billion in impaired loans, with accusations of false accounting and market manipulation. The preliminary hearing is ongoing and will conclude in June 2024.
“I am also very excited and happy for the bank, after eight years of suffering this painful and sad affair is coming to an end, but I have always had faith in justice”. These are Profumo's first words after the sentence. “The fact does not exist and it seems to me to be quite indicative” he concluded.
