Relevant:
- Monte Paschi Bailout In Peril As 3 Banks Walk Out
- Italian Bank Shares Slump as Renzi Loss Adds to Uncertainty
- Deutsche Bank Mismarked 37 Deals Like Paschi's, Audit Says
- Monte Paschi Capital Wiped Out in European Bank Stress Test; Will Raise More Capital
- Ex-Deutsche Bank Executives Among 13 Charged in Monte Paschi Accounting Fraud Case
2017-06-25 — wolfstreet.com
... two of the private investors -- hedge funds Fortress and Elliott -- walked away from the negotiating table [for the bailout of Monte Paschi] in "a dispute over the sales terms," which likely means that even an 80% mark down on MPS' non-performing loans may not be enough to attract private investors. If they don't come back, Monte dei Paschi will have only one willing investor to turn to: Atlante. In other words, back to square one.
The hedge funds' withdrawal prompted fears that it could jeopardize not only the government's efforts to save Monte dei Paschi but also Banca Popolare di Vicenza and Veneto Banca. That has now happened. Contagion at work. And the risk of contagion is still huge.
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