As at 31 March 2016, Veneto Banca had received complaints from 2.457 shareholders and requests for compensation for a total of 174,7 million euro. This is what can be read in the information prospectus of over a thousand pages of Veneto Banca for the capital increase and listing on the Stock Exchange. The main objections raised against the Bank's operations concern, among other things, “the failure or non-timely execution of the orders to sell the shares”; the "unequal treatment of shareholders in the execution of sales orders and the failure to respect the chronology in the receipt of divestment instructions"; the “violation of primary and secondary source obligations imposed on financial intermediaries; "the omitted Mifid profiling"; failure to carry out adequacy assessments; "failure to report a conflict of interest"; “the granting of loans subject to the purchase of Veneto Banca shares; the disbursement of loans aimed at the purchase of those securities; the granting of loans to meet the liquidity needs resulting from the failure to sell the Veneto Banca shares”.
LIQUIDITY LOWER THAN THE REGULATORY MINIMUMS
Subsequently, at the end of May 2016, Veneto Banca had to deal with "significant new liquidity outflows" which brought the liquidity indicator "to a level below the regulatory minimums". This is reported in the Warnings for the investor contained in the prospectus. "The issuer believes that this indicator can return above the regulatory limit only following the capital increase", we read.
WITHOUT INCREASING BAIL IN RISK
Furthermore, “the provision for risks for complaints concerning Veneto Banca shares, as at 31 December 2015 and as at 31 March 2016, was made, contrary to what was requested by the ECB, without the help of an independent expert. If the issuer fails to comply with the coefficients imposed - the document reads - it could be subject to measures by the competent Supervisory Authorities, including the exercise of the powers established by the Consolidated Banking Act, functional to the application of the resolution tools for banks envisaged” by the relevant directive.
If the capital increase of Veneto Banca is not completed, the issuer will not be able to "fill the capital deficit sufficiently to restore the capital ratios to the levels required by the ECB", continues the prospectus. In this case, according to the document, the Montebelluna institute "could find itself in a situation of crisis or instability, with consequent subjection to measures by the competent Supervisory Authorities, including the exercise of the powers provided for by the Consolidated Banking Act functional to the application of the resolution tools for banks envisaged by the European directives”.
THE BOD HAS REDUCED THE FEES BY 25%
Finally, the Board of Directors of Veneto Banca has reduced its remuneration in the run-up to the capital increase and the listing. In a note, the board of directors announces that it has undertaken to immediately reduce its current remuneration by 25%. The choice, on an exclusively voluntary basis, was taken – reports the press release – despite the resolution to confirm the previous remuneration criteria by the shareholders' meeting. At the same time, the waiver of attendance fees for the Board of Directors and the executive committee was established. The board of directors also resolved to start an assessment to set up a "solidarity fund" for the people affected by the crisis of Veneto Banca to which the proceeds of such waivers should be allocated.
