Shares of Italian Banca Monte dei Paschi di Siena, the oldest Bank in the world – cheaper at auction today, 5 December, after the announcement of the results of the referendum in the country. According to Bloomberg, stock prices of the Bank showed the largest drop.
The morning paper became cheaper by 7.5%. Shares of UniCredit, Italy’s largest Bank, has lost 5.5%.
Earlier it was reported that the Bank to increase capital by €5 billion ($5.3 billion) before the end of the year. After the referendum and the resignation of Prime Minister Matteo Renzi is the probability that he will succeed significantly declined, experts say. “It is more likely that banks will give more time to avoid bail-in”, – said strategist Commerzbank’s Christoph Rieger.
Help. Bail-in mechanism used in restructuring troubled banks and predpolagaet or conversion of deposits into shares of the financial institution or renewal of deposits in a special subordinated loan to replenish capital.
Rieger indicates that the application of such a mechanism to Monte dei Paschi, which has the lion’s share of clients – individuals, will only strengthen the country’s populist mood.
Renzi resigned in connection with the defeat in the referendum on his proposal for constitutional reform. He offered to transfer power from regions to the Central government and reduce the role of the Senate, reducing the number of senators to 100.
Two exit poll showed that more than half of voters in the referendum opposed the constitutional reform.
See also: In Rome, thousands of people came out to March against constitutional reform