The European Central Bank has turned the ailing Italian Banca Carige. The Institute is supervised directly by the ECB and now under forced administration. Three interim managers and a monitoring Committee to replace the management of the money house, as the ECB announced. By the measures the Central Bank wants to ensure stability of the Bank and ensure that it complies with the capital regulations.
the decision of The ECB caused a nervousness in the financial markets. The Italian banking index, and the Index for the banks in the Euro-zone fell by around 2.5 percent. The shares of Carige, were suspended from stock exchange trading. The ECB was requested by the Institute, the capital pad and a fusion partner on the lookout.
At the recent Bank stress test, the Institute had been classified as “vulnerable”. In December, the ECB had agreed on a restructuring plan for Banca Carige. This also included a 400 million Euro capital increase for the ailing institution. But the project failed at the end of December on the resistance of the largest shareholder of the Bank. The the in the steel business Empire that had become family Malacalza, which holds 27.6 per cent. She had invested more than 400 million euros to build its share of the Bank, on the stock exchange now only around 20 million euros in value.
The company Malacalza Investimenti, the businessman, Vittorio Malacalza had abstained in the vote on the capital increase and to slow down. The Investor was not, in principle, to a capital increase, Carige, it said. He wanted to know more Details about the current business plan of the Institute and merger opportunities.
billion loss in 2014
Last year, other Italian credit institutions saved already, Banca Carige, by buying the 320-million-Euro-bond. On the market, Carige had previously not attracting investors.
The Genoa-based Bank is suffering from the long years of the Italian economic slowdown and has amassed as many of the local competitors a mountain of bad loans. In order to be more resilient to crisis, had separated Italy’s tenth-largest Bank already from several shops.
Since 2014, Carige had collected a total of 2.2 billion euros from investors and in the same period, a loss of 1.5 billion euros of accumulated mainly in consequence of the burden of bad loans.