Shares in several of Italy's
biggest cooperative banks, known as 'popolari', jumped in
trading Monday on reports the government of Premier Matteo Renzi
was preparing to debate changes to improve governance.
Ubi shares rose by 9%, Bpm shares were up 12.36% and Banco
Popolari rose by almost 9% as the FTSE Mib overall advanced by
1.36% to 19,516.
Renzi's government has said little as yet about possible
changes to banking laws affecting the popolari.
But Italian media have said that the plans to be debated on
Tuesday will include changing the present system that gives
every shareholder one vote regardless of the size of that
person's investment.
Bloomberg reported that the proposals are designed to
improve corporate governance of the banks and said the popolari
have faced criticism in the past for concentrating power in the
hands of local shareholders and local unions.
Maurizio Gasparri of the centre-right Forza Italia said
Monday that Renzi's centre-left Democratic Party (PD) should not
push through such important changes using decrees or other sorts
of legislation but must instead put them up for a full
parliamentary debate.
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