The fate of the oldest bank in the world is reeling. Negotiations for the sale of the Banca Monte dei Paschi di Siena held by the Italian Ministry of Economy and Finance with the banking company Unicredit have been suspended
Everything seems to indicate that the negotiations failed in terms of the strategies to support the transition: UniCredit wanted an injection of 7,000 million euros in Monte dei Paschi to avoid negative impacts on shareholders, while the ministry was leaning towards 5,000 million euros to protect taxpayers.
Divergences also emerged over the restructuring plan and the number of layoffs. The future of the world’s oldest functioning bank, symbol of Tuscany and Renaissance Italy, remains on hold and complicates the efforts of the Government of Prime Minister Mario Draghi to meet the mid-2022 deadline agreed with the authorities of the European Union to reprivatize the bank that Rome rescued in 2017.