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☆ Banco BPM to work on revising business plan, improve targets
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: 1 min

MILAN, April 20 (Reuters) - Banco BPM (BAMI.MI) will work on updating its strategic plan in the coming months and is confident it can improve its financial goals, Chief Executive Giuseppe Castagna said as shareholders prepare to hand him another mandate. Castagna, who has led Banco BPM since the 2017 merger that created Italy's third-largest bank, is set to be reappointed as shareholders vote on Thursday to name a new board. "One of our top priorities for the coming months will be to update our business plan on a stand-alone basis which, I'm sure, will be able to aim to improve the recently announced targets," Castagna told shareholders. Reporting by Andrea Mandala; writing by Valentina Za Editing by Keith WeirOur Standards: The Thomson Reuters Trust Principles.

[1/2] A view shows the logo of Credit Suisse on a building near the Hallenstadion where Credit Suisse Annual General Meeting took place, two weeks after being bought by rival UBS in a government-brokered rescue, in Zurich, Switzerland, April 4, 2023. UBS and Credit Suisse declined to comment. What's more, UBS doesn't tend to lend to potential clients as Credit Suisse has often done, a move that can persuade some customers. "There are clearly parts of Credit Suisse that have had a bad culture," UBS Chairman Colm Kelleher told reporters on March 29. UBS ranked 14th advising on mergers globally last year, behind 11th placed Credit Suisse, according to data compiled by Dealogic.

☆ Italian investor in UniCredit, Banco BPM sees 'strategic value' in deal
▼ + stars: | 2023-04-19 | by ( Valentina Za | ) www.reuters.com time to read: +2 min

Italy's No.2 bank UniCredit was preparing an offer for number three Banco BPM in 2022, before the Ukraine conflict forced CEO Andrea Orcel to focus on its Russia exposure. Orcel had looked to move on Banco BPM soon after becoming UniCredit CEO two years ago, but instead entered talks with the government over a possible Monte dei Paschi (BMPS.MI) acquisition that eventually fell through. Fondazione CRT holds 1.9% of UniCredit and 1.8% of Banco BPM. Twenty years later that gap is still there so the strategic value of the deal remains". Born from the merger of BPM with Verona-based Banco Popolare, Banco BPM controls 12% of Lombardy's banking market, twice UniCredit's market share.

REUTERS/Dado RuvicLONDON, April 19 (Reuters) - Crypto firms have been left scrambling to find banking partners after the collapse of three crypto-friendly lenders in the U.S. last month, creating a risk their business will become concentrated in smaller financial institutions. Mainstream banks have become increasingly wary of crypto clients following a series of high-profile collapses, including the bankruptcy of major exchange FTX in November last year, and a lack of regulation. "Crypto and Web3 start-ups are telling us they simply cannot get a business bank account," said Marcus Foster, head of crypto policy at Coadec, a body representing UK start-ups. A spokesperson for ING said the bank does not "target or focus actively on crypto firms" so its exposure is "very limited." But for smaller crypto start-ups, securing a banking partner could be more difficult, said Ricardo Mico, the U.S. CEO of Banxa (BNXA.V), a payment and compliance infrastructure provider for crypto.

These kind of megadeals are at the vanguard of billions of dollars of annual spending on classic cars globally in a wave of investment in this alternative asset. "The track record of the past 30 years tells us classic cars have become a financial asset class we want our clients to have in their portfolios." [1/5] A general view of the classic car collection of Florian Zimmermann, owner of over 300 classic cars, in a warehouse in Lindau, Germany, April 5, 2023. "Electrification will favour classic cars," said Cristiano Bolzoni, head of Maserati's vintage car unit Maserati Classiche. "The classic car community has changed tremendously over the past five to 10 years," Zimmermann said.

☆ UniCredit CEO expects ECB to take 'balanced approach' on rate hikes
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: 1 min

MILAN, April 6 (Reuters) - The head of Italy's UniCredit (CRDI.MI) expects the European Central Bank (ECB) to take a 'balanced approach' on interest rate hikes, acting on the basis of economic data as they become available given the high level of uncertainty. "I believe that in the end the (European) Central Bank will take a balanced approach, probably raising rates by more than what 'doves' would like, but by less than what 'hawks' would," CEO Andrea Orcel was quoted as saying by Il Messaggero daily on Thursday. Orcel added he expected the ECB's deposit rate could peak in the summer. Reporting by Federico Maccioni, editing by Valentina ZaOur Standards: The Thomson Reuters Trust Principles.

☆ Italy's term deposit rates inch up in March
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +2 min

The increase is 4% for a 18-month term deposit and just 1% for a six-month deposit. After shielding retail customers from negative rates in recent years, Italian banks have tried to profit from the gap between 'active' rates charged on loans and those paid on deposits as the cost of credit started rising. Passive interest rates which lenders pay to depositors typically rise with a lag compared to active ones. The Bank of Italy has also called on banks to revise deposit terms to increase benefits for customers as monetary policy normalises. The threat of higher funding costs is bigger for specialist lenders than traditional commercial banks, with ConfrontaConti.it featuring term deposit offers mostly from challenger banks on its home page.

By offloading some of the risk on their loans, the banks can significantly reduce how much capital they need to set aside to cover potential losses, according to law firm Clifford Chance. A bank can normally transfer risks of losses equivalent to around 7% to 12% of a loan portfolio, two market sources said. With synthetic structures, a bank transfers the risk via credit derivatives or guarantees but keeps holding the underlying exposures. The IFC sold BNP a $50 million guarantee on $1 billion of loans to emerging markets, they said, without disclosing terms. While Europe has been at the forefront for risk transfers, the stock of loans covered by SRTs is small relative to European banks' balance sheets.

The sources said one possibility that has been considered would see Amundi (AMUN.PA) spinning off its Italian operations into a separate company, in which UniCredit (CRDI.MI) could buy a stake. Azimut had 83 billion euros of assets under management (AUMs) at the end of February. Amundi, which is 69% owned by Credit Agricole, ranks third in Italy with 214 billion euros of AUMs as of end-February. UniCredit had 194 billion euros of AUMs at group level in December. "Extracting further value from partnerships on asset management, protection and payments remains another focus," they added.

☆ Europe banks can lose 38% of deposits before having to sell assets at a loss-research
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

MILAN, March 29 (Reuters) - The average European bank could withstand a loss of 38% of its deposits without having to sell at a loss government bond holdings or have a fire sale of illiquid assets, Jefferies analysts said. "Most investor discussions end up at deposit flight risk and the extent to which this can be offset," it added. But investors are worried about the risk that banks may at some point be forced to sell their HTM securities. Jefferies analysed the ability of banks to quickly cover deposit outflows with minimal or no losses, against the level of retail deposits, which comprise 63% of the median bank's deposit base. Following are the results of Jefferies' liquidity analysis:Jefferies liquidity analysis of EMEA banksReporting by Valentina Za and Iain Whithers.

MILAN, March 25 (Reuters) - Italy's Treasury said it would confirm Luigi Lovaglio as chief executive of Monte dei Paschi di Siena , keeping the veteran banker in charge of the bank as turmoil shakes the industry. Monte dei Paschi (MPS) is due to appoint a new board of directors on April 20 and the Treasury, which owns 64% of MPS following a 2017 bailout, on Saturday said it had filed its slate of nominees for the board. He arrived at MPS just over a year ago, when the Treasury pushed out his predecessor. A merger also remains the preferred option of banking supervisors to buttress MPS' fragile profitability, a second source said. A failed attempt to sell MPS to UniCredit has forced Italy to seek more time from the EU to cut its stake.

☆ Italy to hand Monte dei Paschi CEO Lovaglio new mandate - sources
▼ + stars: | 2023-03-25 | by ( ) www.reuters.com time to read: +1 min

MILAN, March 25 (Reuters) - Italy's Treasury is set to hand veteran banker Luigi Lovaglio a new mandate as chief executive of state-owned lender Monte dei Paschi di Siena , two people with knowledge of the matter said. Lovaglio, who built his career at UniCredit (CRDI.MI) where he eventually rose to lead the group's former Polish unit Bank Pekao, arrived at Monte dei Paschi (MPS) just over a year ago, when the Treasury pushed out his predecessor. The state owns 64% of MPS following a 2017 bailout. Lovaglio, one of Italy's most experienced commercial bankers, in November oversaw a make-or-break 2.5 billion euro ($2.7 billion) capital raise which allowed MPS to bolster capital and fund voluntary layoffs. ($1 = 0.9295 euros)Reporting by Valentina Za and Valentina Za; Editing by Michael PerryOur Standards: The Thomson Reuters Trust Principles.

☆ Pope extends sexual abuse law to include lay leaders
▼ + stars: | 2023-03-25 | by ( ) www.reuters.com time to read: +3 min

[1/6] People reach out to touch Pope Francis' hand during his meeting with the faithful of parishes from Rho at the Vatican, March 25, 2023. REUTERS/Yara NardiVATICAN CITY, March 25 (Reuters) - Pope Francis on Saturday updated rules on dealing with sexual abuse in the Roman Catholic Church, expanding their scope to include lay Catholic leaders and spelling out that both minors and adults can be victims. BishopAccountability.org, a not-for-profit organisation looking to document the abuses within the Roman Catholic Church, said the revision was "a big disappointment" and fell short of the "extensive revamping" the policy against the abuses would have required. The updated provisions have been unveiled a month after the Roman Catholic religious order of Jesuits said that accusations of sexual, psychological and spiritual abuse against one of its most prominent members were highly credible. Rupnik has not spoken publicly of the accusations, which have rattled the worldwide order, of which the pope is a member.

A supervisory source told Reuters that redeeming AT1 bonds is a good way to instil confidence in markets if banks have enough capital, which the source said is the case for UniCredit. AT1 bonds are the riskiest type of debt banks can issue, ranking immediately after equity in the event of losses. The decision has disrupted the $275 billion AT1 bond market, which had already seen yields rise in the wake of recent U.S. banking failures. European rules require lenders to put in a request to supervisors to call an AT1 bond at least three months before the due date. AT1 bonds emerged in the wake of the global financial crisis as a way to build up bank capital and absorb losses.

Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. Shares of First Republic Bank (FRC.N) tumbled more than 60% as news of fresh financing failed to reassure investors, and so did Western Alliance Bancorp (WAL.N) and PacWest Bancorp (PACW.O). U.S. bank regulators sought to reassure nervous customers on Monday who lined up outside SVB's Santa Clara, California, headquarters, offering coffee and donuts. Regulators also moved swiftly to close New York's Signature Bank SBNY.O, which had come under pressure in recent days. In China, where SVB was the main go-to foreign bank for the majority of start-ups, entrepreneurs and venture funds were also scrambling for alternative funding.

SVB's meltdown sparked a partisan battle in Washington on Monday, with Democrats arguing that a Trump-era change to bank oversight rules undermined the stability of regional banks. In the money markets, indicators of credit risk in the U.S. and euro zone banking systems edged up. [1/3] U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023. On Monday morning, U.S. bank regulators sought to reassure nervous customers who lined up outside SVB's Santa Clara, California, headquarters, offering coffee and donuts. A furious race to reprice interest rate expectations also sent waves through markets as investors bet the Fed will be reluctant to hike next week.

☆ UniCredit shareholders urged to reject CEO Orcel's pay rise
▼ + stars: | 2023-03-13 | by ( Valentina Za | ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/IllustrationMILAN, March 13 (Reuters) - Leading governance adviser Institutional Shareholder Services (ISS) on Monday recommended shareholders at UniCredit (CRDI.MI) reject a proposed new pay package for CEO Andrea Orcel as well as the bank's new incentive scheme. After recommending UniCredit shareholders vote against Orcel's pay package when he first joined in 2021, ISS last year noted his package, especially a 15 million euro ($16.1 million) severance payment, remained of concern, stopping short of calling for a rejection. "The 30% fixed pay raise in favour of the CEO and the newly introduced discount on the conversion price of equity awards could lead to an excessive increase in the CEO total pay," it added. "With the 30% increase, Orcel's fixed remuneration will be above the top quartile and 55% higher than the median ... When looking at ISS-only selected peers, Orcel will remain the CEO with the highest pay opportunity."

Biden said his administration's actions over the weekend meant "Americans can have confidence that the banking system is safe", while also promising stiffer regulation after the biggest U.S. bank failure since the 2008 financial crisis. Shares in U.S. banking giants JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Bank of America (BAC.N) nevertheless weakened. But your second thought is, how big was that crisis, how big were the risks that this step had to be taken?" U.S. regulators stepped in on Sunday after the collapse of SVB, which had seen a run after a big bond portfolio hit. [1/3] U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023.

☆ Europe's banks unlikely to get hit by bond portfolio losses - Moody's
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +1 min

MILAN, March 13 (Reuters) - European banks are unlikely to find themselves compelled to liquidate their bond holdings at a loss like their U.S. peer Silicon Valley Bank (SIVBV.UL), Moody's Investors Service said on Monday. Though rising interest rates have hit the value of banks' bond portfolios, their market value will tend to converge with their nominal value as they approach maturity, under an effect known as 'pull-to-par'. "Based on their sound liquidity and funding profiles, cash holdings and stable deposit bases, we consider large European banks are generally well placed to avoid the need to sell their bonds at a loss," Moody's said in a comment. Moody's noted that a third of European banks' government bond holdings mature within the next two years, ensuring a continuous inflow of cash and reducing the need to sell assets. The agency noted that the failures of U.S. banks Silicon Valley Bank and Silvergate (SILV.UL) resulted from "a sudden loss of confidence and resulting high cash outflows from concentrated deposit bases".

☆ Italy's UniCredit, Intesa fall as investors fret over bond portfolio risks
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

[1/2] A view of the Unicredit headquarters of which many employees are working from home due to a coronavirus outbreak, in Milan, Italy March 2, 2020. REUTERS/Yara NardiMILAN, March 10 (Reuters) - Shares in leading Italian banks UniCredit (CRDI.MI) and Intesa Sanpaolo (ISP.MI) fell sharply on Friday following a sell-off in U.S. and Asian banks driven by concerns lenders potentially face losses on their government bond portfolios. The rise in interest rates has hammered the value of those portfolios, with Italian banks seen as particularly exposed given the risk premiums investors demand to hold Italian paper rather than higher-rated German government bonds. By 0820 GMT shares in UniCredit lost 4.5% and Intesa around 4%. Reporting by Valentina Za Editing by Keith WeirOur Standards: The Thomson Reuters Trust Principles.

☆ States are banning an energy pill dubbed 'gas station heroin' after people suffer opioid-like withdrawals, paranoia, and hallucinations
▼ + stars: | 2023-03-08 | by ( Alex Bitter | ) www.businessinsider.com time to read: +4 min

Known as "gas station heroin," tianeptine is sold under names like Za Za Red and Tianna. Users often buy tianeptine, sold under brand names including Za Za Red, Tianna, and TD Red, hoping for a boost of energy and better focus. Tianeptine's withdrawal symptoms mirror those of opioidsQuitting the drug requires an approach similar to quitting opioids, according to the FDA. In Wetumpka, Alabama, the local hospital's detox unit has attracted attention for helping people get off the drug, local television station WSFA reported in February. "People with a history of opioid use disorder or dependence may be at particular risk of abusing tianeptine," according to the FDA's guidance.

☆ Telecom Italia boosted by rival offer for landline grid
▼ + stars: | 2023-03-06 | by ( Elvira Pollina | ) www.reuters.com time to read: +2 min

TIM is betting on a sale of its most prized asset to cut its 25 billion euros debt pile and fund an overhaul of the revenue-starved group. Both offers value TIM's grid, which is Italy's main piece of telecoms infrastructure, in the region of 18 billion euros ($19.2 billion), sources familiar with the matter said. "The news is positive for TIM as a second approach increases its bargaining power," broker Equita wrote in a research note. The shares were up around 3.5% at 0.32 euros at 0900 GMT, levels not seen since last April. Regulation issues remain a hurdle for the new bidders, as CDP and Macquarie own TIM'smaller rival Open Fiber.

CDP has teamed up with Australian infrastructure fund Macquarie (MQG.AX) to bid for Italy's most important telecommunications infrastructure, for which U.S. investment firm KKR (KKR.N) has already presented an offer. One of the people familiar with the matter said that CDP board members were set to meet at 3 p.m. (1400 GMT) to approve the offer. In recent weeks, sources have told Reuters that CDP-Macquarie and KKR have both set an 18-billion-euro ($19 billion) enterprise value for TIM's grid. CDP's offer would also involve TIM's smaller fibre-optic network rival Open Fiber, which is owned by CDP and Macquarie and would be folded into TIM's grid down the road. Under Italian rules, Rome has the power to block unwanted interest for assets of strategic importance such as TIM's grid.

CDP has teamed up with Australian infrastructure fund Macquarie (MQG.AX) in the offer for Italy's most important telecommunications infrastructure, which would compete with one submitted by U.S. investment firm KKR (KKR.N). In recent weeks, sources have told Reuters that CDP and Macquarie were ready to value TIM's grid at around 18 billion euros ($19 billion), including some 6 billion euros of debt. An offer from CDP and Macquarie leaves several scenarios open, two government officials said, without elaborating. Besides owning 10% of TIM, CDP controls fibre optic rival Open Fiber. Meloni's predecessors, Mario Draghi and Giuseppe Conte, have both backed plans to combine TIM's and Open Fiber's grids.

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