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ECB vigilance criteria 'opaque' for MPS - Padoan

Economy minister calls for sanctions against managers

(ANSA) - Rome, December 29 - Economy Minister Pier Carlo Padoan on Thursday said a European Central Bank (ECB) request for a higher capital increase for troubled Tuscan lender Monte dei Paschi di Siena (MPS) "cannot be challenged" although more information on the criteria on which the request was based would have been helpful.
    "Additional information from the ECB on the criteria through which this evaluation was reached" would have been helpful, although the central bank's request for an 8.8-billion-euro capital increase "cannot be challenged because vigilance is an independent authority", the minister told a forum organized by Financial daily Sole 24 Ore.
    "Lack of information translates into opacity and opaque things lead to interpretations that are almost always wrong", he added.
    The minister also called for sanctions against bank managers who damaged bondholders, adding that, "not enough has been done" in Italy in this regard.
    The ECB on Tuesday said a capital increase for the newly nationalized MPS must be raised from five billion to 8.8 billion euros after the Italian government presented a bailout plan right before Christmas.
    The recapitalization for the world's oldest and Italy's third-largest lender to be paid for by the Italian State and skateholders became necessary after the quick deterioration of the bank's liquidity position between November 30 and December 21, as highlighted by a significant drop in the counter balancing capacity and one-month, net liquidity, the bank said this week.


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