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When I revealed Deutsche Bank had helped Monte Paschi hide losses from its accounts with complex derivatives, it was only the beginning of a sorry tale that's dragged on for years tarnishing regulators, courts, Italy, Europe and cost taxpayers billions https://bloom.bg/3lT02Is
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A similar deal with Nomura soon emerged, and Paschi's new management -- brought in to clean up the bank -- restated the lender's accounts.
Yet, just days later, doubts were raised that the books were still misrepresenting the bank's real risk: https://bloom.bg/341feNl
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Yet, just days later, doubts were raised that the books were still misrepresenting the bank's real risk: https://bloom.bg/341feNl
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And it takes two to tango: Deutsche Bank had replicated the Monte Paschi trade with multiple clients around the world, and kept the deals off its own books too:
https://bloom.bg/31brLfv
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https://bloom.bg/31brLfv
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Since then, Deutsche Bank adjusted its accounting, as did Paschi. A year ago, managers and the bankers who helped Paschi hide losses in 2008 were convicted.
Yesterday, it was the turn of the executives who had been tasked with clean-up in 2012: https://bloom.bg/37ar0Hp
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Yesterday, it was the turn of the executives who had been tasked with clean-up in 2012: https://bloom.bg/37ar0Hp
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Monte Paschi's most recent history has not been any less eventful.
There are doubts over whether the bank was solvent when it received the last round of state aid and questions remain as to why the regulators ignored the lender's perilous condition: https://bloom.bg/3lWkybb
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There are doubts over whether the bank was solvent when it received the last round of state aid and questions remain as to why the regulators ignored the lender's perilous condition: https://bloom.bg/3lWkybb
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Monte Paschi is still barely profitable, suffocating under legal claims just as it seeks to move on from dodgy deals and bad loans.
Financial stability may have been preserved by keeping it going, but the damage to confidence in the nation and the industry will be lasting.
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Financial stability may have been preserved by keeping it going, but the damage to confidence in the nation and the industry will be lasting.
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My latest thoughts: https://www.bloomberg.com/opinion/articles/2020-10-15/monte-paschi-s-cover-ups-have-damaged-italy-and-europe?sref=kSg2Lr85
and a bonus video
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and a bonus video
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