MontePaschi puts derivative losses at $987 million
- Associated Press
- February 7, 2013 - 5:36 AM
MILAN - Embattled Italian bank Monte dei Paschi di Siena says its loss-making derivative trades will cost it (EURO)730 million ($987 million).
CEO Fabrizio Viola said in a conference call Thursday that 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 will be included in balance sheets to be released in March.
The bank has sought (EURO)3.9 billion in government aid to absorb the impact of the trades and as a buffer to its high exposure to Italian sovereign debt.
Chief financial officer Bernardo Mingrone said the bank will need an additional year, until 2016, to reimburse the bonds.
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