Bank of Italy (BoI) Senior Deputy Governor Salvatore Rossi on Tuesday defended the central bank's "prompt and proper" conduct in last year's takeover of Banca Popolare di Spoleto (BPS) by Banca Desio. BoI Governor Ignazio Visco is being probed for corruption, abuse of office and fraud in connection with that takeover. "The incident takes place in a climate of intense political controversy, which occasionally targets the banking sector and the Bank of Italy," Rossi said in a letter to employees.
"Suspecting that decisions taken (by the central bank's commissioners) were improper also doubting of the professional capacities and the honesty of many hundreds of colleagues," Rossi warned.
Prosecution papers last week confirmed Visco is under investigation after former BPS shareholders alleged the Bank of Italy turned down a buy offer from Hong Kong-based NIT Holdings Ltd. even though it beat the Desio offer by 100 million euros. The central bank commissioners turned that offer down without providing clear motivation, the shareholders argued.
BPS was placed into receivership before the sale to Desio, a move Adusbef consumer group said led to "serious losses" for shareholders.
Adusbef President Elio Lannutti estimated that the decision caused BPS shareholders damages of 300-350 million euros, and called on Premier Matteo Renzi to dismiss Visco with immediate effect.
He said bank shareholders and depositors will be in "grave danger" as of January 1 next year, when a bail-in program to rid Italy's banks of their non-performing loans could kick in under the supervision of a central bank that has proven itself "incompatible with the job of safeguarding public savings".
The European Central Bank (ECB) said last week it "welcomes favorably" an Italian measure to bail in the country's banks, which currently hold what Italian Banking Association (ABI) said are 198.5 billion euros in gross non-performing loans. A bail-in forces the borrower's creditors to bear some of the burden by having part of the debt they are owed written off.
Visco is being probed along with seven others, according to prosecution papers. They were named as Bank of Italy-nominated commissioners Giovanni Boccolini, Gianluca Brancadoro and Nicola Stabile, oversight committee members Silvano Corbella, Giovanni Domenichini and Giuliana Scognamiglio, and current BPS President Stefano Lado.
BPS is no stranger to controversy, as prosecutors in 2013 investigated former executives at the Umbrian bank - including ex-president Giovannino Antonini - on suspicion of racketeering, aggravated misappropriation, fraudulent bankruptcy and other felonies committed between September 30, 2007, and April 24, 2012.
That probe is awaiting a preliminary hearing in court.
ALL RIGHTS RESERVED © Copyright ANSA
