Italy’s Treasury has appointed Luigi Lovaglio as the new CEO of Monte dei Paschi di Siena, a state-owned lender that was bailed out in 2017. This article discusses the background of the appointment and the future of the bank under Lovaglio’s leadership.
Background of Monte dei Paschi di Siena
Monte dei Paschi di Siena (MPS) is one of Italy’s oldest banks, founded in 1472. However, in recent years, the bank has been plagued by scandals and financial difficulties. In 2017, the Italian government was forced to bail out the bank with a 5.4 billion euro ($6.4 billion) injection of capital. As part of the bailout, the Italian government took a 64% stake in the bank.
Since then, the Italian government has been searching for a CEO to lead the bank’s turnaround. The previous CEO, Marco Morelli, resigned in 2019, and the bank has been without a permanent CEO since then.
Appointment of Luigi Lovaglio as CEO
Now, it seems that the Italian government has found its new CEO for MPS. Two people with knowledge of the matter have reported that the Treasury has appointed Luigi Lovaglio as the new CEO of the bank.
Lovaglio is a veteran banker with over 30 years of experience in the industry. He has held various senior positions at Intesa Sanpaolo, one of Italy’s largest banks, and has also worked at Deutsche Bank and JPMorgan Chase.
Lovaglio’s appointment is seen as a positive sign for the future of MPS. He has a reputation for turning around struggling banks, and his experience in the industry is expected to be an asset to the bank.
Future of Monte dei Paschi di Siena under Lovaglio’s leadership
Lovaglio’s appointment comes at a crucial time for MPS. The bank is still struggling financially, and its reputation has been damaged by a series of scandals in recent years. However, with Lovaglio at the helm, there is hope that the bank can turn its fortunes around.
Lovaglio has a track record of successfully turning around struggling banks. At Intesa Sanpaolo, he was instrumental in the bank’s acquisition of Banca Carige, which was struggling financially. Lovaglio oversaw the integration of Banca Carige into Intesa Sanpaolo, which resulted in significant cost savings and improved financial performance.
Under Lovaglio’s leadership, MPS is expected to focus on cost-cutting and improving its balance sheet. The bank will also need to rebuild its reputation and regain the trust of its customers.
Conclusion
Luigi Lovaglio’s appointment as CEO of Monte dei Paschi di Siena is a positive step for the bank. His experience in the industry and track record of turning around struggling banks make him the ideal candidate to lead the bank’s turnaround. With Lovaglio at the helm, there is hope that MPS can rebuild its reputation and return to profitability.
