for instance. Point. Leek,
I really appreciated his inquiry into MPS of 7 November a Fourth Republic and I am writing to ask you for further investigation, a supplementary investigation into the shameful damage caused to small saver shareholders who have naively (naivety is not a fault) once again trusted the bank and the role played by all the parties involved,
In the broadcast you touched on all aspects, but the one on the damages suffered by the shareholders has gone into the background. Like so many savers I lost all the invested amount (95 thousand euro) due to the capital increase of the Monte Paschi di Siena bank. The increase was approved by Consob, but it is a theft, a delisting masked.
An increase in fact impracticable due to the disproportion in its formulation. The terms are these: paid attribution of n. 374 new shares at a price of €2 each for every 3 held. Just do the math to understand that a retail investor cannot bear a similar cost. In my case, for example, I own 1500 shares, for every 3 of these, i.e. 500, they give 374 shares at a cost of 2 euros.
500 x 374 = 187,000 new shares x 2 = €374,000. Unsustainable!
As soon as I became aware of these methods, I tried to sell immediately, but the order was not executed, everyone wanted to sell.
All of this took place with the accomplice endorsement of Consob whose top management could not have known what would happen, so much so that on the last day before the increase (when it was now impossible to sell due to excessive reductions) CONSOB issued a “call for attention” no. 5/22 of 10/13/22 announced to the public on 10/14/22 in which savers are warned of the risks of high volatility. He basically washes his hands of it.
Consob is not new to these “messes”. A child would have understood that in these terms the raise was theft. I am scandalized by how Consob could have authorized such an operation which only goes to the detriment of small savers who have trusted this bank in good faith by purchasing its shares. There is something very unclear.
It was an increase to the full benefit of institutional investors and the Guarantee Consortium that he had the means to do so. The Guarantee Consortium bought the unexercised rights for very few cents. At the time of ex-dividend, the right was worth €7.837 by the end of the day on the first day of trading it had already dropped to €0.631.
An increase designed to eliminate the cost of rights and knowingly aimed at damaging (it is more appropriate to “fuck”) small shareholders. In other words, socialization of losses and privatization of profits. Let’s be clear, I am well aware of the risks of the stock market, but here we go further, here an increase was authorized the terms of which effectively made it impossible for small savers to proceed due to the onerousness of the operation.
The good faith of investors that they expected an increase in “honest” terms is demonstrated by the fact that as soon as the news of the agreement with the Guarantee Consortium came out, the stock rose by more than 10%. The following day, the terms of the transaction were announced and the stock immediately collapsed. I immediately gave the sell order to the best, but despite this the order was not executed due to lack of buyers.
The main shareholder is the State with 64%obliged by European regulations to leave the shareholding structure, a State which has joined by paying out a dizzying amount which we ultimately finance with our taxes.
In summary, socialization of losses and privatization of profits. State aid in disguise, aid prohibited by Community law. CONSOB is also involved having authorized the prospectus of the increase.
Something is moving in the press and beyond:
the newspaper “Domani” of 30 October 2022
Il Sole 24 ore of 27 October 2022
The ECB which once again paid attention to MPS for how it set up the capital increase. Borsa Italiana is (or should be) a regulated market, controlled by CONSOB!
It wasn’t a black swan, not a random and unexpected event, it was the exact opposite, planned, studied at the table. The few who knew about it speculated on the ruins of the othersit seems that the CEO Lovaglio waited for the increase to buy the rights of 100,000 shares for a few cents, paying them 2 euros when before the collapse they were worth 25.
But as a regulated market, cryptocurrencies are less risky! I lost everything because after the increase the rights went to zero from day one. It must no longer happen and Consob, instead of sleeping, must no longer allow such havoc!
I don’t know if there is any chance of success of an action for damages in the face of an increase approved by CONSOB, in any case I turned to an association for the protection of savers and many of us, like me, have already done so. I have much more to say, but I don’t want to go into it any further. However, I believe that there is ample material for an inquiry, as you know how to do, on the role of the parties involved:
mpswhose leaders set up a capital increase made to socialize the losses to the detriment of small shareholders whose only wrong is to have trusted them and to privatize the profits, to the advantage of large investors.
The Consob which authorized an over-diluted increase, well aware of the consequences it would have on the portfolios of small investors.
Here you are State who has to shell out a large sum once again to avoid bankruptcy, money that ultimately falls on all of us.
It is a very serious fact of national importance which has involved and seriously damaged many savers and their families. Meanwhile, the stock continues to tumble on the stock market even after the capital increase. It must not happen again!
Mauro, November 16, 2022
