Of Special Interest


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24th February 2012

Profumo tipped as next MontePaschi chairman

Alessandro Profumo, the controversial former Chief Executive of UniCredit, is tipped as favourite to become chairman of Monte dei Paschi di Siena.

Profumo built UniCredit up from a national player to a major global bank but was eventually ousted in a boardroom coup. Since the speculation of his move started MontePaschi shares have risen 30%. MontePaschi which has itself grown through acquisitions toi become Italy's third largest bank and now has capital problems. It requires a further €3.2bn of capital before the June 30th European deadline requiring CT1 capital of 9% to the Basel 2.5 standard. A rights issue would be difficult because the 49% owner of MontePaschi, the Siena banking foundation has its own debt difficulties. Whilst the foundation would like to sell its stake in MontePaschi it would be difficult now for this to be achieved before the deadline.