UniCredit SpA Chief Executive Officer Alessandro Profumo stepped down, ending his 13-year tenure as head of Italy’s largest bank, after clashing with shareholders over Libyan investments in the company.
Banca Monte dei Paschi di Siena’s 4.07 billion-euro ($5.2 billion) state rescue won’t resolve the troubles of Italy’s third-largest bank, which is poised to report a second straight loss on soaring bad-loan provisions.
The risk of the euro area breaking up is minimal even as a lack of political leadership to resolve the region’s debt crisis undermines the currency, says Alessandro Profumo , chief executive officer of UniCredit SpA, Italy’s biggest bank.
The Fondazione Monte dei Paschi di Siena has its headquarters in the baroque Palazzo Sansedoni overlooking the Italian city’s main square. It was there, one day in November, that Chairman Gabriello Mancini delivered the bad news: The foundation, which for 15 years had supported the districts that compete in the renowned Palio horse races, could no longer pay for the spectacle’s colorful medieval costumes.