Monte dei Paschi: the bank that threatens the life of Siena and the stability of Italy and Europe

The stress tests published this Friday by the European Banking Authority (EBA) confirm the fears: Monte dei Paschi is a giant in the ICU, since its basic capital ratio CET1 stood at -2.2% at worst scenario planned for 2018 or -2.4% in the case of fully applying the Basel III criteria (‘fully loaded’).

the banking authority had not set a minimum level of capital to approve the stress tests, although the market considers as a reference to pass the examination a minimum of 5.5% of the level of capital of maximum quality CET1, similar to the one used in the resistance tests carried out at the end of 2014.

Perhaps for this reason, the bank has announced minutes before knowing the results of these tests that has given its approval to a recapitalization plan amounting to 5,000 million euros with which the Tuscan entity aims to ensure its viability

Far from the cold data provided by the continental regulator, behind the collapse of the bank of Siena hide thousands of personal stories. As many sins as his directive have committed.

The oldest bank in the world, born in 1472, has squandered a whole history in recent years. The majority shareholder before the financial crisis broke out was the Fondazione Monte dei Paschi. His counsel is chosen by the City Council of Siena, the province, the region, the university and the archbishopric. Everything is in the family. The problem is that the parties began to agree on the distribution of directors of the Fondazione and positions in the bank.

And as the family seeks the best for the family, Monte dei Paschi lent immense amounts to the city itself. The idea was to take root in society, even on the basketball team. The icing on the cake arrived with a relay in the direction. Giusseppe Mussari became president of the entity in 2006. His knowledge in finance, void. “A provincial lawyer with political connections without banking experience,” defined the Financial Times.

Ruinous purchases and loans

Ruinous purchases and loans

 

Under his mandate, the entity was made with Banca Antonveneta, bought from Santander for 9,000 million just months after the Spanish entity acquired it by about 6,000. A ruinous operation that enlarged the hole that carries the entity.

In this management and operational context came the Great Recession. Siena is face to face with reality: the entity has given credits to everything that was put ahead, without great care. Loans www.partaworld.com/online-share-brokers-my-five-best-tips-on-choosing-an-internet-stock-broker/ to business adventures, to construction, to nearby politicians, to manufacturing, to families without serious guarantees … The recession hits them squarely and they can not return the amounts committed. That obsession to be the local bank would end up hurting.

Debt soars, capital increases do not work and defaults begin to accumulate. Little by little, it approaches the precipice. To rescue it, this week is the last injection, for 5,000 million euros, to prop up the capital and seek to divest 10 billion in doubtful loans, which either would be sold to third parties or would happen to form a kind of ‘bad bank ‘

The entity has sinned to act as a clientelist network, at the service of political power and friends. The credit for all Siena did not have a high level of default. Battered, from 2011 to 2015 has accumulated losses of 14,000 million.

Any rescue that meets the stipulations of European regulations would break the city’s schemes. Italy has the peculiarity that the common saver is committed to bank debt, which would assume the costs in a rescue. Thus, they would lose their life savings.

The consequences of taking away the ‘private’ citizen would also freeze Siena’s economy if it does not already do so, any solution that might be proposed for Monte dei Paschi. The suffering will be reflected in shops, jobs, the streets of the city. Cutting the credit tap will plunge the liquidity of companies, both medium and regional weight.

His disappearance would cut off a vital line of credit

His disappearance would cut off a vital line of credit 

the last hope. But whoever gives, also takes: entities such as Banca Popolare di Vicenza have put as a condition for loans the purchase of shares in the bank in exchange for granting loans for people in extreme conditions. Actions that are now worth little more than nothing, compared to quotes from years ago. Bad practice that joins a commercial operation known in Spain: the placement of highly complex products among non-institutional clients.

In the end, Monte dei Paschi continues to be a confirmation of the laissez-faire of the Italian political leadership, which has denied for years a problem that was before their eyes. The necessary reforms were not undertaken to avoid the situation, while now it is intended to act when the ball already adds 360,000 million in delinquent credits.

Now, threatens to end the life of Siena. But it will also disrupt the Italian banking system as a whole. And from there to a European contagion there may be just one more step. The one who can give Monte dei Paschi to fall definitively down the precipice.

Monte dei Paschi: the bank that threatens the life of Siena and the stability of Italy and Europe

The stress tests published this Friday by the European Banking Authority (EBA) confirm the fears: Monte dei Paschi is a giant in the ICU, since its basic capital ratio CET1 stood at -2.2% at worst scenario planned for 2018 or -2.4% in the case of fully applying the Basel III criteria (‘fully loaded’).

the banking authority had not set a minimum level of capital to approve the stress tests, although the market considers as a reference to pass the examination a minimum of 5.5% of the level of capital of maximum quality CET1, similar to the one used in the resistance tests carried out at the end of 2014.

Perhaps for this reason, the bank has announced minutes before knowing the results of these tests that has given its approval to a recapitalization plan amounting to 5,000 million euros with which the Tuscan entity aims to ensure its viability

Far from the cold data provided by the continental regulator, behind the collapse of the bank of Siena hide thousands of personal stories. As many sins as his directive have committed.

The oldest bank in the world, born in 1472, has squandered a whole history in recent years. The majority shareholder before the financial crisis broke out was the Fondazione Monte dei Paschi. His counsel is chosen by the City Council of Siena, the province, the region, the university and the archbishopric. Everything is in the family. The problem is that the parties began to agree on the distribution of directors of the Fondazione and positions in the bank.

And as the family seeks the best for the family, Monte dei Paschi lent immense amounts to the city itself. The idea was to take root in society, even on the basketball team. The icing on the cake arrived with a relay in the direction. Giusseppe Mussari became president of the entity in 2006. His knowledge in finance, void. “A provincial lawyer with political connections without banking experience,” defined the Financial Times.

Ruinous purchases and loans

Ruinous purchases and loans

 

Under his mandate, the entity was made with Banca Antonveneta, bought from Santander for 9,000 million just months after the Spanish entity acquired it by about 6,000. A ruinous operation that enlarged the hole that carries the entity.

In this management and operational context came the Great Recession. Siena is face to face with reality: the entity has given credits to everything that was put ahead, without great care. Loans www.partaworld.com/online-share-brokers-my-five-best-tips-on-choosing-an-internet-stock-broker/ to business adventures, to construction, to nearby politicians, to manufacturing, to families without serious guarantees … The recession hits them squarely and they can not return the amounts committed. That obsession to be the local bank would end up hurting.

Debt soars, capital increases do not work and defaults begin to accumulate. Little by little, it approaches the precipice. To rescue it, this week is the last injection, for 5,000 million euros, to prop up the capital and seek to divest 10 billion in doubtful loans, which either would be sold to third parties or would happen to form a kind of ‘bad bank ‘

The entity has sinned to act as a clientelist network, at the service of political power and friends. The credit for all Siena did not have a high level of default. Battered, from 2011 to 2015 has accumulated losses of 14,000 million.

Any rescue that meets the stipulations of European regulations would break the city’s schemes. Italy has the peculiarity that the common saver is committed to bank debt, which would assume the costs in a rescue. Thus, they would lose their life savings.

The consequences of taking away the ‘private’ citizen would also freeze Siena’s economy if it does not already do so, any solution that might be proposed for Monte dei Paschi. The suffering will be reflected in shops, jobs, the streets of the city. Cutting the credit tap will plunge the liquidity of companies, both medium and regional weight.

His disappearance would cut off a vital line of credit

His disappearance would cut off a vital line of credit 

the last hope. But whoever gives, also takes: entities such as Banca Popolare di Vicenza have put as a condition for loans the purchase of shares in the bank in exchange for granting loans for people in extreme conditions. Actions that are now worth little more than nothing, compared to quotes from years ago. Bad practice that joins a commercial operation known in Spain: the placement of highly complex products among non-institutional clients.

In the end, Monte dei Paschi continues to be a confirmation of the laissez-faire of the Italian political leadership, which has denied for years a problem that was before their eyes. The necessary reforms were not undertaken to avoid the situation, while now it is intended to act when the ball already adds 360,000 million in delinquent credits.

Now, threatens to end the life of Siena. But it will also disrupt the Italian banking system as a whole. And from there to a European contagion there may be just one more step. The one who can give Monte dei Paschi to fall definitively down the precipice.

  • BLOG: Each player will take 720,000 euros if Spain wins the World Cup.
  • The amount would be paid by the Spanish Federation, not even one euro comes from public money.
  • The RFEF draws large numbers of friendly, sponsors and sports awards.
  • France, Brazil and Germany would take, to win, less than half that Spain.
Selección española

The 23 summoned for the World Cup of the Spanish team. EFE

After making public the bonuses that could receive the players of the Spanish team in case of winning the World Cup or even go far in it, many voices have shown their indignation and many questions to be resolved.

The most important clarification that must be done is that not one euro of that amount comes from public money . The total cost of the premium to the players (€ 16,560,000) plus what the coaching staff takes away, complete, from the Spanish Federation.

How much do you charge?

Each player will take 720,000 euros if Spain wins the World Cup. In the case of runners-up , the amount would be 360,000 euros , while in the semifinals the figure is 180,000, for rooms 120,000 and for eighteen 60,000 . If it falls eliminated in the first round, there would be no bonus.

Where does the money come from? Who pays?

The RFEF is the only sports federation that waives State subsidies . His income is very high and he does not need to receive a quantity of the PGE (General State Budgets) as if they do the rest of the federations.

The Spanish team has 19 sponsors who contribute large amounts

Therefore, the more than 16.5 million euros that will be taken by the players come from the Spanish Football Federation. Their numerous (already high prices, in addition) sports sponsorships (19 sponsors, with Cruzcampo, Iberdrola and Movistar at the top), the money that FIFA gives to win the World Cup (about 30 million euros) and the succulent amounts that the national team Spanish takes out for each friendly match that disputes makes facing that amount is no problem.

We must conclude, therefore, that the amount sounds immoral, but does not differ in anything from the premiums paid by Real Madrid or Barça, the salary of Lebron James or that of a CEO of an oil company.

Who charges them?

The amount that has been published in the media, those 720,000 euros, is for each player . Of the bonus that Vicente del Bosque and his technical team would receive, nothing is known, although the normal figure is that the figure is the same.

How much and where is it taxed?

After winning the 2008 European Championship , the Spanish soccer players paid their taxes in Austria, taking advantage of an agreement between our country and the Central European one that dated from the Franco regime.

The taxation of the premiums would be in Spain

After the victory in the World Cup in South Africa there was much controversy because the players wanted the taxation was made in the African country , but eventually it was not and the money from those taxes went to the coffers of the Tax Agency. After the victory in the Eurocopa of Ukraine and Poland, the players also paid taxes in Spain.

As with Brazil there is an agreement on double taxation, taxes, 52% of the amount received ( 8,652,000 euros ), would go to the Spanish Treasury .

Is it more than other tournaments?

Yes, in the World Cup in South Africa the amount was 600,000 euros , so there has been an increase of 20%. In the Eurocopa of 2012 the figure was 300,000 euros , while in the 2008 was 214,000 .

How much do other selections take?

Being a negotiation between the players of each country and their respective football federation, each selection takes a different amount. Surprisingly , Germany, France and Brazil would take less than half that Spain (300,000 Germans, 330,000 Gauls and the local team). Of course, it should be clarified that these are unofficial figures that are usually made public when the tournament ends.

Poll

Do you think the figure that every player in Spain would win for winning the World Cup is exorbitant?

Yes, in these times it is immoral to take 720,000 euros.
89.08% (4029 votes)
Yes, they should charge at most the same as in the previous World Cup.
2.92% (132 votes)
No, soccer players generate that money and it is fair that they receive it if they win.
8% (362 votes)
see survey

More information about:

  • World 2014
  • Soccer World Cup
  • Spanish national football team

How does Bizum, the new 'app' to pay with the mobile?

  • The entities that will participate represent a market share of more than 95%.
  • It may be used soon to make purchases in stores and online ; at the moment it only works for payments between individuals.
  • The money is transferred from account to account instantaneously; You can transfer from 50 cents to 500 euros per operation per day.
Mujer con móvil

A woman consults her mobile phone. GTRES

Who has not ever needed to pay a dinner to a friend and found that he did not have enough money? And how many times have we paid at the bar everyone's drinks because the others did not have coins? These are some of the situations that can be avoided with a new system of payments between individuals that has arrived this week in Spain.

What is Bizum?

Bizum is an application for mobile that allows payments and collections between individuals, for cases in which the intermediaries do not have money in cash and without needing to know the bank account number of the recipient of the payment.

How can you start using this application?

There is no specific application for Bizum, but the service is integrated into the banks' own apps. In other words, in order to make payments through the mobile phone, it is only necessary to download the mobile operating platform of the bank of which you are a customer. Within these applications will be offered the possibility to customers to use the service. To make payments, both the money issuer and the receiver must have the app active.

What banks offer it?

For the moment, it can be used by the bank account holders of 16 Spanish banks: Caixabank, BBVA, Santander, Sabadell, Bankia, Banco Popular, Kutxabank, Ibercaja, Bankinter, Liberbank, Laboral Kutxa, Cecabank, Caja Sur, Imagin Bank, Oficinadirecta. com and Banco Pastor. These entities comprise 82% of the market share of the sector in Spain. During this month the service will be extended to eight other banks, which would reach a 95% quota. In addition, the managers of Bizum are working to incorporate another ten banking entities in the next months, although they do not give more details of which are those entities with which they are negotiating.

What kind of payments can be made with the application?

The service is designed to make small payments between individuals quickly. Money transactions are made from account to account, but it is not necessary to know the deposit number. It is enough to enter the intermediary's phone number, which facilitates the sending of money. In reality, its greatest use is to replace the delivery of cash. The situations in which it is useful are countless: for example, to pay half the dinner of a restaurant when we do not have loose coins, to charge the cost of a gift among a group of friends or even to ask for the repayment of a debt to someone without the excuse that he has no money at that moment.

Is there a money limit?

It is designed to carry out exchanges of small quantities. Transactions through Bizum may range between 50 cents and 500 euros, ie you can pay from a coffee to the month of rent to our roommate. In any case, each bank will have the power to set a different limit within that range.

Is the use of the app free or will they ask for a commission?

The banks that work with Bizum offer the service free of charge to their clients in the current launch phase. However, some of them do not rule out charging some type of commission in the future. At the moment, the only one that has already established its commission policy is Bankinter, which will offer the first ten operations free of charge. Between the eleventh transaction and the twentieth will be charged one euro. For the rest of operations there are still no details. In any case, the banks propose to exempt users from the payment of the commission with a high degree of fidelity.

Is the use of this application safe?

One of the great reluctance of consumers when using electronic commerce is the fear that payments are not made or that intermediaries can access personal and financial data. The banking entities, aware of this reluctance, clarify that the application is backed by the security systems of banks and complies with banking regulations regarding payments and data protection. In addition, to make the money transaction it will not be necessary to enter personal data or the bank account digits, so there is no way for any hacker to access confidential data. Bizum takes advantage of the information that already resides in the banks.

Will there be new bizum utilities in the future?

At the moment, only the account-based payment service is available, but the company that manages the application is already working so that in the future it can also be used to close online purchases and even to pay in shops. The system that would be used for this would be the NFC (near-field-communication, or proximity communication) and the POS (terminal point of sale).

Will there be enough users of this application?

For the use of this application to be successful it is necessary to extend it among the citizens, since the payer and the collector must have downloaded the platform. The managers of Bizum assure that 37,000 users have already been registered and more than 7,500 operations have been carried out. "It's a spectacular start," said yesterday the CEO of Bizum, Angel Nigorra. The goal is to reach 1,000 million operations in a period of five years. This would be equivalent to making 7% of all electronic banking transactions through this service.

More information about:

  • Mobile phone

Drones insurance – Hobbypiloten need this insurance protection

 
 
Drones for fun enjoy ever greater popularity. But only very few amateur pilots realize that there are special rules for data and insurance protection for flying, filming and taking photos from the air. finanzen.de answers the most important questions about drones, such as whether the flying objects must be insured.

 
 
So sind Hobby-Drohnen richtig versichert
Hobby drones need special insurance

There are numerous models of drones that are used by amateur pilots: from small models weighing one kilo to massive aircraft that go well over five kilos . Regardless of size , the drones – also known as Quadro or Multicopter – can be equipped with various accessories such as a video or photo camera. However, since their use involves various dangers, amateur pilots need special insurance cover . When using cameras, privacy issues also play an important role. finanzen.de has at Dr. med. Volker Eckert of the German Model Flyer Association (DMFV) and the specialist lawyer for IT law Michael Terhaag asked what rights and obligations consumers have and how it stands for the insurance protection.

How are hobby drones and their “pilots” insured?

Most private liability insurance companies do not include model airplanes, which include privately used drones, in their protection. But “for airplanes there is a statutory compulsory insurance. The liability insurance exists in the form of a holder liability insurance for aircraft models, “said Eckert. The DMFV offers corresponding insurance protection through membership. “Cameras for drones are also insured.” But this protection only applies to European model airfields. Who wants to enjoy worldwide protection and also wants to fly outside of club grounds, needs additional insurance, which is also offered for example by the DMFV. Good to know: Such extra insurance is not needed if the model weighs less than 1,000 grams .

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This damage does not cover liability insurance

According to Eckert, “most privately used copters fall into the range easy and slow .” But that does not mean that they can do no damage. “Anyone who has appropriate insurance coverage is insured against damage to third parties. This also includes damage caused by ‘force majeure’ – when a flight model crashes through a gust of wind. However, the damage to the operated model is not insured . “

However, the protection is never “when the pilot acts intentionally” or violates laws . In general, “pilots in Germany need an official permit to operate aircraft models with a take-off weight of more than 5 kg. In addition, combustion models (powered equipment) weighing more than 5 kg must be operated at a distance of more than 1.5 km from the outskirts . “

Some models – for example, sailors and electric models under 5 kg – can fly in residential areas with only a few restrictions . Every recreational pilot is responsible for not endangering, disturbing, or otherwise harassing anyone. “When flying on foreign land, the owner or tenant must be asked for his consent . The statutory provisions must be observed. “Eckert continues.

 

Liability insurance also independent of a model flying club

Although most liability insurance excludes damage to model airplanes and drones . But that is not the case for all insurers. Interested parties should therefore inform themselves with their provider exactly.

Beware of no-fly zones: ignorance does not protect against punishment

Drones, like all other model airplanes, are not allowed to fly into no-fly zones . “It is the responsibility of the pilot of a model to inquire whether, when and where he may operate his model.” Anyone who is unsure, can ask the German air traffic control. There are also special maps showing no-fly zones. Insurance companies point out that “the insurance cover only exists in full if the statutory provisions are adhered to, ” explains Eckert.

No-fly zone: These are the legal consequences

Michael Terhaag, who deals mainly with the topic of data protection and privacy rights, adds to the issue of no-fly zones that the typical no-fly zones include, for example, hospitals, military facilities and crowds (demos, concerts) . “You should not be flown over, nor filmed or photographed.” The specialist advises also advised against flying over highways. On the other hand, you can easily raise your drone over gardens, parks, and public spaces, and also film and photograph there .

Whether damage occurs or not: “Anyone who gets into a no-fly zone with his drone and gets caught in spite of his efforts must, in most cases, expect a fine, ” says Terhaag. However, this is very different in height. It depends primarily on whether a “serious effort” by the pilot is shown to behave properly. “For example, anyone who accidentally gets into a no-fly zone with a small drone usually gets away with a warning. However, anyone who makes a 20 kg drone fly over a demonstration has not informed himself well enough, “explains Terhaag in an interview.

Drones and privacy: Where are video recordings and photos allowed?

Who wants to take an aerial photo with a drone is limited in its radius and its possibilities over some guidelines . In general, ” everyone has the right to their own image, ” explains Terhaag. Who makes targeted pictures or recordings of third parties acts unlawful. “In such cases, no hobby pilot is protected by his liability insurance for claims for damages or claims for damages.” On the other hand, this looks different when the hobby pilot can prove that the person being photographed merely appears as an “accessory” – not as the actual reason for the shots.

“Pork heavy and crazy dangerous”: These are possible damage by drones

According to the lawyer, drones, depending on their weight, size and functions , can cause serious personal injury and property damage. “In addition, it is possible to seriously violate applicable law.” For example, against the right to their own image. “A drone can be used to take pictures of people in the neighboring garden or in an outdoor swimming pool . This is illegal . If pilots are detected in unauthorized shooting, the victims have the right to withhold the drone and delete the footage. Legal consequences follow depending on the situation. There are really far-reaching consequences for pilots who illegally film or photograph other people and publish the material – for example on Facebook. “