Banca Monte dei Paschi di Siena SpA, engulfed by criminal probes into the conduct of its former management, said 2012 net assets will take a 730 million-euro ($987 million) hit after accounting for structured deals that hid earlier losses.
Monte Paschi, the subject of investigations spanning from allegations of market manipulation to false bookkeeping, said the gross impact on net assets of the trade dubbed Santorini will be 305.2 million euros, while Alexandria will lead to a restatement of 272.5 million euros, according to a stock- exchange statement.
Chief Executive Officer Fabrizio Viola and Chairman Alessandro Profumo are trying to reassure investors that Italy’s third-largest bank will succeed with a turnaround plan that is central to a 3.9 billion-euro taxpayer bailout due this month. Monte Paschi is seeking state funds to boost capital after failing to meet European regulators’ minimum requirements in a rescue that some lawmakers and consumer groups oppose.
To contact the editor responsible for this story: Frank Connelly at firstname.lastname@example.org