Shows & Panels
Shows & Panels
- The 2014 Big Picture on Cyber Security
- AFCEA Answers
- American Readiness: Renewable Power and Efficiency Technologies
- Ask the CIO
- Building the Hybrid Cloud
- Connected Government: How to Build and Procure Network Services for the Future
- Continuing Diagnostics and Mitigation: Discussion of Progress and Next Steps
- Federal Executive Forum
- Federal News Radio's National Cyber Security Awareness Month Special Panel Discussion
- Federal Tech Talk
- The Future of Government Data Centers
- The Future of IT: How CIOs Can Enable the Service-Oriented Enterprise
- Government Perspectives on Mobility and the Cloud
- The Intersection: Where Technology Meets Transformation
- Maximizing ROI Through Data Center Consolidation
- Mitigating Insider Threats in Virtual & Cloud Environments
- Modern Mission Critical Series
- The New Generation of Database
- Reimagining the Next Generation of Government
- Targeting Advanced Threats: Proven Methods from Detection through Remediation
- Transformative Technology: Desktop Virtualization in Government
- The Truth About IT Opex and Software Defined Networking
- Air Traffic Management Transformation Report
- Cloud First Report
- General Dynamics IT Enterprise Center
- Gov Cloud Minute
- Government in Technology Series
- Homeland Security Cybersecurity Market Report
- National Cybersecurity Awareness Month
- Technology Insights
- The Cyber Security Report
- The Next Generation Cyber Security Experts
Shows & Panels
MontePaschi puts derivative losses at $987 million
Thursday - 2/7/2013, 10:20am EST
AP Business Writer
MILAN (AP) -- Embattled Italian bank Monte dei Paschi di Siena put the losses from three derivative trades that were concealed for years at EUR730 million ($987 million), and assured investors on Thursday that they should not mount.
"There are no more Santorinis," CEO Fabrizio Viola told a conference call, referring to the nickname of one of the trades.
Viola said two of the transactions were transformed last month, which will help curb losses thanks to favorable trends in bond markets. The third had been previously restructured. All three had remained hidden for years until new management took over in 2012.
The losses, which will be included in balance sheets to be released in March, were in line with expectations. The bank has sought EUR3.9 billion in government aid, including EUR500 million specifically earmarked to absorb the impact of the trades. The remainder is a capital buffer to help it deal with high exposure to Italian sovereign debt, whose value has been volatile over the past year.
Shares in the world's oldest running bank, established in 1472, gained more than 8 percent to EUR0.25 in Thursday trading.
Chief financial officer Bernardo Mingrone said the bank will need an additional year, until 2016, to reimburse the state aid, due to the additional EUR500 million.
Viola said there has been no flight of customer deposits from the bank and that he was not "distracted" by speculation over possible mergers.
"We are strongly engaged in realizing a demanding industrial plan, made more demanding by the recent events," he said.
Prosecutors in Siena have been questioning former managers in recent days over allegations that the bank overpaid for the Italian bank Antonveneta, which it purchased for EUR9.3 billion from Spanish bank Santander in 2007.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.