December 29, 2016 – TGCOM24 aired an interview with SEP Scientific Council member Francesco Saraceno, in which he discusses the recapitalization of Monte dei Paschi di Siena. After announcement of the government bailout, the European Central Bank sent a letter stating that MPS’ capital shortfall had risen to €8.8bn from the initial €5bn, increasing the cost of the rescue. The higher price tag would naturally eat up a larger chunk of the €20bn approved by Parliament. Saraceno asserts that the change itself is not surprising, as these numbers tend to move up and down as the situation changes. However, what is bizarre is the lack of a clear explanation as to how this new number was computed. Either way, the bank will have to be saved, but it would be nice to know exactly what factors changed the ECB’s evaluation.
- The original interview (in Italian) is available from TGCOM24.