Mps suspended downward after plea agreement and letter ECB – Milano Finanza

Eyes again focused on MPS , which this morning opened and was immediately suspended downward with a theoretical decrease of 4.81% and then back to bargaining with a loss of 7% at an altitude of 0.3573 euro. On one side the Sienese bank informed the market that it intends to negotiate (this is 600 thousand euro of criminal sanction and confiscation of 10 million) on past events. The other shows a letter that the ECB would send to the bank just before the referendum on Brexit, calling for a three-year plan to dispose of at least 10 billion Npl.

The plea agreement refers to Santorini derivatives and Alexandria, which Mps he had signed with Deutsche Bank and Nomura. And to borrow Fresh, which allowed her time buying Antonveneta according to then undisputed capital requirements. In the list there is also the securitization of real estate transactions (Chianti Classico). The agreement was found with the power of attorney, the preliminary hearing judge now has to decide later this month.

According to media reports, the letter asks the ECB to Siena to present as soon as possible a three-year plan to bring back level physiological the percentage of non-performing loans of the bank. Or dispose of at least a dozen billion euro of gross doubtful loans of over 27 billion years which hamper the revival. The objectives are higher than those of the strategic plan Mps a year ago, which provided 2018 sales of 5.5 billion suffering and the internal recovery of other 6 billion.

MPS recorded in the financial statements impaired loans on average 39% of their nominal value, while the overall market evaluates them between 18% and 20%. That’s why you created the fund Atlas, which should buy them according to the value of the hedging banks, on average, twice the market (about 40%).

Meanwhile, the European banking authority, the EBA, will make known in late July the outcome of stress tests on banks. An important step for MPS , which must show a minimum level of solidity in the event of rain market (and with the Brexit has had an important taste).