{"id":22304,"date":"2016-12-21T13:20:38","date_gmt":"2016-12-21T18:20:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=22304"},"modified":"2016-12-21T13:20:38","modified_gmt":"2016-12-21T18:20:38","slug":"italy-to-nationalize-monte-paschi-after-private-sector-rescue-fails","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=22304","title":{"rendered":"Italy To Nationalize Monte Paschi After Private Sector Rescue Fails"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2016-12-21\/italy-nationalize-monte-paschi-after-private-sector-rescue-fails\">Italy To Nationalize Monte Paschi After Private Sector Rescue Fails<\/a><\/h3>\n<section class=\"node node-type-story node-full node-nid-582155\" data-mediaconductor-processed=\"true\">\n<div class=\"content\">\n<p><em><strong>Update:\u00a0<\/strong><\/em>the FT writes that the Italian govt set to take a stake between 50% and 70% in Monte dei Paschi, up from the current 4% stake, as part of the government&#8217;s third bailout in as many years. As\u00a0<a href=\"https:\/\/www.ft.com\/content\/90299b9e-c789-11e6-9043-7e34c07b46ef\">the FT adds<\/a>, &#8220;the government rescue,\u00a0<strong>which had long been resisted in Rome<\/strong>, is designed to draw a line under the slow-burn crisis in Italian banking that has alarmed investors and become the main source of concern for European financial regulators.&#8221;<\/p>\n<p>It remains to be seen if Germany, long a critic of state bailouts, will be as agreeable.<\/p>\n<p>Meanwhile, Pier Carlo Padoan, the Italin finmin, insisted that apart from a few \u201ccritical\u201d situations, Italy\u2019s banking system was \u201csolid and healthy\u201d. He vowed to \u201cminimise, if not erase\u201d any impact of the public intervention on the savings of ordinary citizens.<\/p>\n<p>* * *<\/p>\n<p data-mediaconductor-processed=\"true\">The third bailout, and re-nationalization, of Italy&#8217;s third largest banks is imminent following a Reuters report that the ongoing, JPM-led attempt to execute a complex private sector bailout of Monte Paschi has failed.<\/p>\n<p>According to\u00a0<a href=\"http:\/\/www.reuters.com\/article\/us-eurozone-banks-italy-montepaschi-offe-idUSKBN14A1NV?il=0\">Reuters<\/a>, Qatar&#8217;s sovereign wealth fund, long considered as the most likely anchor investor with a \u20ac1 billion allocation in any rescue plan cash call, decided it is unwilling to invest in the Italian bank, meanwhile Monte Paschi has been unable to find a replacement investor willing to put money in its privately funded rescue plan, less than 24 hours before the offer ends.<\/p>\n<p>As a result, the bank entire share sale, which closes at 2 p.m. (1300 GMT) on Thursday, has drawn very little interest from the wider investment community.<\/p>\n<p>As laid out previously, the\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2016-12-06\/italian-government-prepares-nationalize-monte-paschi\">bank needs to raise \u20ac5 billion\u00a0<\/a>by the end of this month to avert being wound down. The Italian government, which earlier today got a greenlight to issue \u20ac20 billion in public debt to use for bank bailout purposes, is expected to step in this week and nationalize the bank.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Italy To Nationalize Monte Paschi After Private Sector Rescue Fails Update:\u00a0the FT writes that the Italian govt set to take a stake between 50% and 70% in Monte dei Paschi, up from the current 4% stake, as part of the government&#8217;s third bailout in as many years. As\u00a0the FT adds, &#8220;the government rescue,\u00a0which had long [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[52,11066,8262,7812,359,1464,539,4318],"class_list":["post-22304","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank","tag-bank-bailout","tag-financial-times","tag-ft","tag-germany","tag-italy","tag-monte-paschi","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22304"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22304\/revisions"}],"predecessor-version":[{"id":22305,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/22304\/revisions\/22305"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}