Why was born the fund Atlas?
The fund is proposed as a solution “system” to the problem of the Italian banks, in a context of their great fragility in the markets ( -41% on the stock market year to date, 34 billion capitalization burned). Atlas of the eve of two very difficult capital increases, those of Popolare di Vicenza and Veneto Banca. In all, it comes to 2.5 billion at risk: the fear is that a major part of this increase is not subscribed by the market, with very serious consequences for the entire financial system and for savers.
What can Atlante to solve the problem?
Atlas intervenes by buying the unsubscribed part of the capital increases: the first one from the temporal point of view (and the more difficult ) is that of Vicenza (expects the oK from Consob around 18 to 19 April); then the wheel will follow Veneto Banca. But it will not be the only ones.
The fund will serve only for capital increases?
No, the other strong goal is to act as a support with sales transactions and management of impaired loans by Italian banks. Are the well known non-performing loans (whose sufferings are the worst part) that weigh as boulders on the balance sheets of Italian banks. The fund’s mission is to assist the system to dispose of this set of loans in difficulty, by buying at least part of the banks.
Because banks do not sell these credits on the open market, specialized operators?
Because the feedback of specialized funds are often very low: for example in the case of four banks ended up in the “resolution” (Etruria, Banca Marche, Carichieti and Cariferrara) were measured at 18% of their nominal value.
And the bottom because the pay?
This point has not yet been determined but it seems there is a desire to get closer to the value load banks (on average 40% of the initial value of the loan). The fund would aim in fact only those loans that have very high guarantees (from the debtor) and easily recoverable, not to expose the fund to potentially large losses.
But who is Atlas?
Atlas is a fund managed by the asset management company (SGR) Quaestio. Like all funds, will the subscribers who will buy the shares. The subjects who will intervene are precisely in phase of definition in these hours. There will be banks, CDP, insurance, some foundations and other entities; Also Poste is thinking about it: “We’ll see how it performs,” said the CEO of the group, Francesco Caio.
will use money or government guarantees?
No, the resources we use – have been proposed up to six billion – are all from the bottom of subscribers.
however is not likely that Brussels would consider it State aid?
the fund is moving according to an intentional action and the involvement of parties participated by the state (beginning with CDP) is made according to the private investor market principles.
4 to 6 billion will be enough to solve the problems of Italian banks?
the firepower that will become Atlas will be higher, because the fund may borrow and raise funds on market. You can not do it for the part that will destine to underwrite the unsubscribed shares of the banks in the capital increase, but will resort to “leverage”, to debt, to purchase non-performing loans from banks. May borrow up to one and a half compared to the assets it takes for this entry.
To serve this second type of intervention?
A lot of banks Italian, but at the top of the list is of course the Montepaschi, the great emergency. Carige also has many non-performing loans in the financial statements. The Banco Popular has just launched an increase from one billion, just to dilute the weight of his sufferings.
When will operationally?
The project is being built (by the way the board of directors must approve the choice to join) but the primary goal is to start in time for the capital increase Popolare di Vicenza.
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