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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/dec/22/italys-monte-dei-paschi-bailout-rescue-bid-business-live
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| Italy's Monte dei Paschi on brink of bailout as rescue bid fails – business live | Italy's Monte dei Paschi on brink of bailout as rescue bid fails – business live |
| (35 minutes later) | |
| 8.44am GMT | |
| 08:44 | |
| Monte dei Paschi’s shares are having one of those mornings; they’ve already been suspended once, after plunging over 6%: | |
| Monte dei Paschi said headed for nationalization after sale failure. Stock halted after falling 6.8% in Milan. https://t.co/cj85YeqXF4 pic.twitter.com/EaQtfAgQXd | |
| Banca Monte Paschi shares resume trading after limit down, off nearly 6%. Italian, Spanish yields tick higher on bailout reports | |
| 8.37am GMT | |
| 08:37 | |
| Europe’s stock markets have dipped into the red in early, subdued trading. | |
| There’s no sign of the traditional “Santa Rally” yet; perhaps it has been lost in the fog gripping London this morning. | |
| Connor Campbell of SpreadEx sums up the mood: | |
| Once again the main news surrounded Monte dei Paschi. With the world’s oldest bank rapidly running out of time to raise the €5 billion in capital it desperately needs – it’s only managed €2 billion so far, with a key Qatari investors choosing not to invest a €1 billion chunk – it looks like MPS will be forced into a government bailout. Italy approved a €20 billion increase to its debt ceiling yesterday, freeing up money for its ailing banks, starting with Monte dei Paschi. | |
| This news has begun to drag on the rest of the European banking sector, with the likes of Deutsche Bank, Barclays and Lloyds all dipping their toes into the red after the bell. This in turn capped the region’s indices, with the DAX and CAC falling 0.1% and 0.2% respectively. | |
| 8.27am GMT | 8.27am GMT |
| 08:27 | 08:27 |
| Update: Shares in Monte Dei Paschi have finally opened, and they’re down 6.75% at €15.20. | Update: Shares in Monte Dei Paschi have finally opened, and they’re down 6.75% at €15.20. |
| They’ve already shed more than 99% of their value in the last decade, as this graph from blogger Jeroen Blokland shows: | They’ve already shed more than 99% of their value in the last decade, as this graph from blogger Jeroen Blokland shows: |
| The downfall of the world’s oldest bank in one chart! #montepaschi pic.twitter.com/UfGHsB3WFy | The downfall of the world’s oldest bank in one chart! #montepaschi pic.twitter.com/UfGHsB3WFy |
| 8.18am GMT | 8.18am GMT |
| 08:18 | 08:18 |
| Shares in Monte dei Paschi have failed to open at the start of trading in Milan. | Shares in Monte dei Paschi have failed to open at the start of trading in Milan. |
| Buyers may be in short supply today, as they risk being wiped out if the Italian state has to bail the bank out | |
| Updated | |
| at 8.49am GMT | |
| 8.08am GMT | 8.08am GMT |
| 08:08 | 08:08 |
| Il Sole 24: MPS rescue could take three monrths | Il Sole 24: MPS rescue could take three monrths |
| Italian newspaper Il Sole 24 is reporting that the rescue of Monte Dei Paschi might take two or three months. | Italian newspaper Il Sole 24 is reporting that the rescue of Monte Dei Paschi might take two or three months. |
| The paper says that the details haven’t been worked out yet, but that MPS would initially be able to tap state guarantees to bolster its liquidity. | The paper says that the details haven’t been worked out yet, but that MPS would initially be able to tap state guarantees to bolster its liquidity. |
| That would help MPS avoid running out of cash, now that Qatar has declined to back its €5bn cash call. | That would help MPS avoid running out of cash, now that Qatar has declined to back its €5bn cash call. |
| A long-term recapitalisation plan would take longer; and involve MPS’s management presenting a new business plan. | A long-term recapitalisation plan would take longer; and involve MPS’s management presenting a new business plan. |
| #ITALY | MONTE DEI PASCHI RESCUE BY THE STATE TO BE CARRIED OUT IN SEPARATE STEPS, TWO OR THREE MONTHS WILL BE REQUIRED - IL SOLE 24 ORE | #ITALY | MONTE DEI PASCHI RESCUE BY THE STATE TO BE CARRIED OUT IN SEPARATE STEPS, TWO OR THREE MONTHS WILL BE REQUIRED - IL SOLE 24 ORE |
| #ITALY | MONTE DEI PASCHI CAPITAL HIKE UNDER STATE RESCUE TO REMAIN UNVARIED AT AROUND 5 BLN EUROS - IL SOLE 24 ORE - RTRS | #ITALY | MONTE DEI PASCHI CAPITAL HIKE UNDER STATE RESCUE TO REMAIN UNVARIED AT AROUND 5 BLN EUROS - IL SOLE 24 ORE - RTRS |
| 7.50am GMT | 7.50am GMT |
| 07:50 | 07:50 |
| The agenda: Monte dei Paschi bailout looms as Qatar walks away | The agenda: Monte dei Paschi bailout looms as Qatar walks away |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Monte dei Paschi di Siena has been through a lot since it was founded back in 1472, twenty years before Columbus discovered America. | Monte dei Paschi di Siena has been through a lot since it was founded back in 1472, twenty years before Columbus discovered America. |
| And the world’s oldest bank finds itself in the undignified position of needing a bailout this morning, after efforts to persuade private investors to provide desperately needed fresh capital floundered. | And the world’s oldest bank finds itself in the undignified position of needing a bailout this morning, after efforts to persuade private investors to provide desperately needed fresh capital floundered. |
| Monte dei Paschi di Siena admitted last night that Qatar’s sovereign wealth fund had not been persuaded to become the “anchor investor” to underpin its €5bn cash call. | Monte dei Paschi di Siena admitted last night that Qatar’s sovereign wealth fund had not been persuaded to become the “anchor investor” to underpin its €5bn cash call. |
| So a saga that has been dragging on for months could finally be resolved today, when the cash call closes at lunchtime today. | So a saga that has been dragging on for months could finally be resolved today, when the cash call closes at lunchtime today. |
| Without private sector capital, MPS is now likely to miss an end of year deadline imposed by the European Central Bank to raise fresh funds. So the Italian government is now under serious time pressure to step in and put in fresh capital itself. | Without private sector capital, MPS is now likely to miss an end of year deadline imposed by the European Central Bank to raise fresh funds. So the Italian government is now under serious time pressure to step in and put in fresh capital itself. |
| As we wrote last night, MPS is running out of time and options. | As we wrote last night, MPS is running out of time and options. |
| Shares in the bank, Italy’s third largest, gyrated wildly in Wednesday’s trading session, plunging 18% to record lows before closing 12% lower amid rumours that the fund-raising effort would fail. | Shares in the bank, Italy’s third largest, gyrated wildly in Wednesday’s trading session, plunging 18% to record lows before closing 12% lower amid rumours that the fund-raising effort would fail. |
| “The idea that Qatar could be an anchor investor has vanished and without an anchor investor there is no demand from anyone else,” one source told Reuters. | “The idea that Qatar could be an anchor investor has vanished and without an anchor investor there is no demand from anyone else,” one source told Reuters. |
| In the last few minutes, the bank reported that it had only raised €2bn in new capital through the debt-for-equity swap, far short of the €5bn target. | In the last few minutes, the bank reported that it had only raised €2bn in new capital through the debt-for-equity swap, far short of the €5bn target. |
| *ITALY GOVT MAY APPROVE DECREE TO RESCUE PASCHI TODAY: STAMPA --- debt for equity swap raised 2.07 bln, far below target of 4.3 bln | *ITALY GOVT MAY APPROVE DECREE TO RESCUE PASCHI TODAY: STAMPA --- debt for equity swap raised 2.07 bln, far below target of 4.3 bln |
| Yesterday, Italy’s government prepared for a rescue bid by approving a €20bn fund for bank recapitalisation. | Yesterday, Italy’s government prepared for a rescue bid by approving a €20bn fund for bank recapitalisation. |
| Ministers have also insisted that there will be a “minimised or non-existent” impact on savers. But shareholders, and those who hold MPS’s junior, and riskier, bonds could suffer losses. | Ministers have also insisted that there will be a “minimised or non-existent” impact on savers. But shareholders, and those who hold MPS’s junior, and riskier, bonds could suffer losses. |
| Also coming up today | Also coming up today |
| The Dow Jones industrial average will have another tilt at smashing through the 20,000 point mark, after faltering and falling back from record highs yesterday. | The Dow Jones industrial average will have another tilt at smashing through the 20,000 point mark, after faltering and falling back from record highs yesterday. |
| We get a flurry of US economic data, including new personal consumption and durable goods orders at 1.30pm GMT, plus the latest weekly jobless report. | We get a flurry of US economic data, including new personal consumption and durable goods orders at 1.30pm GMT, plus the latest weekly jobless report. |
| And rumours continue to swirl that Deutsche Bank might be close to a settlement with the Department of Justice, over misconduct before the 2008 financial crisis. | And rumours continue to swirl that Deutsche Bank might be close to a settlement with the Department of Justice, over misconduct before the 2008 financial crisis. |
| Updated | Updated |
| at 7.59am GMT | at 7.59am GMT |