From Surging Yields to Euro-Exit Bets, an Italy Rout Cheat Sheet
Posted on Tuesday May 29, 2018

The anti-establishment politicians vying for leadership in the continent’s second-most indebted country want to boost spending in defiance of European Union budget strictures -- and make battle with the entrenched order. Italian markets showed some signs of stabilization on Wednesday, but fears remain that a snap election could effectively constitute a referendum on whether the country stays in the euro area. The best gauge of risk in any European bond market is a comparison with yields of Germany, the continent’s safest country to lend money to.

Italy must present Monte dei Paschi exit plan by 2019 - CEO tells paper
Posted on Sunday May 20, 2018

Italy must present the European Commission with a plan for its exit from lender Monte dei Paschi (BMPS.MI) by 2019, Chief Executive Marco Morelli told daily Corriere della Sera. Last year, the Commission and Italy reached a pact on a state bailout for Monte dei Paschi that included heavy cost cuts, losses for some investors and a pay cap for executives. Monte dei Paschi, the country's fourth largest bank, is now 68 percent owned by the government and under the bailout deal, Italy is due to exit the troubled lender in 2021 at the latest.

Paschi Leads Italy Banks Lower on Populists' Revamp Plans
Posted on Friday May 18, 2018

Banca Monte dei Paschi di Siena SpA led the Italian banking index to its biggest three-day decline in more than a year after Italy’s populist parties set out plans to overhaul the state-rescued lender’s turnaround strategy and review rules that sought to strengthen the global financial industry. Monte Paschi declined as much as 5.1 percent and was down 2.4 percent at 2.85 euros as of 2:47 p.m. The stock has fallen 12 percent in the past four trading sessions, giving up most of the gains made after the bank reported a profit on May 10. The accord also calls for a review of Monte Paschi’s recovery plan.

Italy's League wants to keep Monte dei Paschi in public hands
Posted on Thursday May 17, 2018

FLORENCE/MILAN, Italy (Reuters) - State-controlled Italian bank Monte dei Paschi di Siena (BMPS.MI) will remain in public hands and planned branch closures will be rolled back if Italy's League forms a new government, its economic spokesman said. It is also likely that a government including the League would look to replace the bank's chief executive, Claudio Borghi told Reuters by telephone on Thursday. "The state won't pull out of Monte dei Paschi, as I promised in the election campaign, and its mission will be redefined," he said.