The Banca Popolare di Vicenza
bank confirmed it is shutting down 150 branches and cutting 575
jobs, union sources said after meeting with bank management
Wednesday.
The bank forecast a return to profit in 2016 with gains of
200 million euros in 2018 and a 0.4% reduction in labor costs by
2020.
The bank is trying to obtain a capital increase of 1.5
billion euros, union sources said.
"Recapitalization will be difficult but not impossible,"
the sources cited CEO Francesco Iorio as saying during the
meeting.
President Giovanni Zonin was placed under investigation
earlier this month over alleged stock manipulation and
obstruction of regulatory authorities at the medium-sized
Italian lender.
The bank's former general manager, Samuele Sorato, is also
being probed.
Finance police searched Banca Popolare di Vicenza offices
in Milan, Rome and Palermo in relation to the probe
by prosecutors in the northern city of Vicenza.
In recent weeks some account holders filed complaints to
prosecutors, sources said.
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