Unicredit-Mps, Bastianini and Orcel hearing in the Banking Commission

• Unicredit-Mps: the Commission of Inquiry into Banks summons the ad Bastianini and Orcel

• Mps.

  Unicredit is called out, we talk about nationalization again

• Mps, negotiations between Mef and Unicredit have been interrupted

• Mps-Unicredit, negotiated with Mef towards the stop

• Mps, Franco: "It will not be a sale, a solution in the interest of the country"

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08 November 2021 The Parliamentary Commission of Inquiry into the Banking and Financial System heard the Chief Executive Officer of the Unicredit group, Andrea Orcel, and the CEO. di Monte dei Paschi di Siena, Guido Bastianini, on the closure of the negotiations relating to the acquisition of the Sienese bank.

 he underlined: "Monte dei Paschi di Siena could carry out further necessary reductions in both costs and personnel", just as it could "increase investments" in technology. At the moment, he explained, the institute "is carrying out in-depth analyzes that aim to complete the restructuring process". From his report it is highlighted that the cost that MPS would have to incur to incentivize 4,000 voluntary exits through the redundancy fund "would have a total cost of about 950 million" and would allow to obtain a "reduction in personnel costs equal to about 315 million per year in 2026 ". "Different hypotheses" compared to the 2,500 redundancies of the current plan "they are possible and will likely be examined in the preparation of strategic options for the period 2022-2026 ", he said, illustrating this different solution on the cost front. 

The hearing of

, CEO of Unicredit, ended in secret mode, in the part in which he explained the extent of the capital increase of Mps which, according to the agreed principles, the Mef should have undertaken before the acquisition by part of UniCredit. At the end of October, the Bank and the Mef announced the halt of the negotiations. In the Banks Commission Orcel said that the data emerged from the

they revealed a need for capital deemed excessive by the Mef and that Unicredit did not want to review the parameters from which the negotiations had started. Orcel pointed out: "Although the final result" relating to the negotiation on Monte dei Paschi di Siena "is different from what was hoped for" by Mef and Unicredit, "I believe it can be said without fear of denial that we have done our best to try to reach an agreement that was in line with the principles agreed at the beginning of the negotiations and reflected in the agreement signed with the Mef and communicated to the market on July 29, 2021 ". "I am certainly sorry on a personal level that this operation was not successful, - he added - also as an Italian who, respecting his role,believes and is investing in the future of our economy ", concludes the CEO of Unicredit.