Monte dei Paschi still reeling from banker suicides

Monte dei Paschi, the large Italian bank based in Siena, which was featured in my award-winning video and story on “Banker Suicides”, had its stock halted Tuesday in European trading as the bank struggles to survive.

The financial institution’s stock was trading down 23%  to 0.30 euros when shares were halted on the news that the troubled firm would slash 2,500 jobs, cutting 2K branches over the next 3 years.

To refresh, Monte dei Paschi, employed David Rossi, the chief of communications at the time in 2012, while its criminally indicted activity of taking over of another Italian bank, according to charges filed.

This take over was funded and led by Deutsche Bank, which inflated the health of Monte dei Paschi at the time to overpay for the second bank.

Rossi’s “suicide,” which was captured by a security tape at the Siena headquarters, is still under investigation by Italian authorities.

Monte dei Paschi is currently led by new chief executive Marco Morelli, who was brought in September. Morelli comes out of the European offices of Merrill Lynch and JPMorgan before that.

Two former Deutsche Bank executives, CEO Anshu Jain and chief of risk officer William Broeksmit, both came out of Merrill and its industry-leading derivative work.

Broeksmit also took his life in London and is chronicled in the video series.

The last bank executive mentioned in the story is Michele Faissola, the asset management chief, who has been criminally indicted in the Monte dei Paschi takeover and was the first person to arrive at Broeksmit’s suicide.

 

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