Understanding Veneto Banca Liquidation and Equity

Veneto Banca's liquidation was announced in 2016, following a significant decline in its stock price and a failed merger with another bank.

The bank's equity had been severely impacted, with a net loss of €3.1 billion in 2015, largely due to the provision for bad loans.

This provision was made necessary by the bank's exposure to the Italian real estate market, which had been experiencing a downturn.

The bank's assets were subsequently sold off to other financial institutions, resulting in a significant loss of value for shareholders.

Veneto Banca was established in 1877 as Banca Popolare di Montebelluna. It all started there.

In the 1960s, the bank began expanding by acquiring local cooperative banks and savings banks. This marked the beginning of a significant growth phase.

Veneto Banca's expansion accelerated in the 2000s, with a focus on North-West and Southern Italy, as well as Eastern Europe. The bank was on the move.

In 2001-2002, Veneto Banca acquired 29 branches of Nuova Banca Mediterranea from Banca di Roma. These branches were quickly integrated into Banca Meridiana.

Banca Meridiana was merged with Banca Apulia, another subsidiary of Veneto Banca, in 2010. The bank continued to grow through strategic mergers.

In the 2010s, Veneto Banca acquired Cassa di Risparmio di Fabriano e Cupramontana (CARIFAC), which had a presence in Marche Region, Umbria Region, and Rome.

The financial issues surrounding Veneto Banca were significant, with the European Central Bank and Single Resolution Board determining the bank and its sister bank BPVi were insolvent in June 2017.

Over €4 billion was spent by the Italian banking system to resolve four small banks between 2015 and 2017, with some banks contributing to a voluntary scheme.

The Italian government decided to wind up Veneto Banca and BPVi under Italian laws, separating them into good and bad banks.

A fund was set up by Intesa Sanpaolo to repay bonds held by small investors, as part of the "bail-in" rule, where Atlante and other shareholders and subordinated bondholders received nothing.

Insolvency is a serious financial issue that can happen to anyone, even with a good income and credit history.

According to the article, insolvency occurs when a person's debts exceed their assets, making it impossible to pay off creditors. This can happen suddenly, even to someone with a steady income.

The article notes that insolvency can be caused by a range of factors, including job loss, medical emergencies, or unexpected expenses. These events can quickly drain a person's savings and leave them unable to pay their bills.

Bankruptcy, on the other hand, is a legal process that allows individuals to restructure their debts and start fresh. The article explains that bankruptcy can be a complex and time-consuming process, but it can also provide a much-needed safety net for those struggling with insolvency.

In the United States, for example, there are several types of bankruptcy, including Chapter 7 and Chapter 13. Chapter 7 bankruptcy involves the liquidation of assets to pay off creditors, while Chapter 13 bankruptcy allows individuals to create a repayment plan to pay off debts over time.

In June 2017, the European Central Bank and the Single Resolution Board determined Veneto Banca and its sister bank BPVi were insolvent.

The two banks would be wound up by the Italian government under Italian laws, into good and bad banks instead of being put in resolution by the board.

On 26 June, a contract was signed to acquire some of the good assets of Veneto Banca and BPVi, but Banca Intermobiliare was excluded from the sales.

The European Commission approved the state aid of Italy to Intesa Sanpaolo for the incentive to close down the branches of the "good banks" and recapitalize them for about €4.785 billion on 25 June.

As part of the "bail-in" rule, Atlante and other shareholders and subordinated bondholders received nothing.

However, Intesa announced that the bank would set up a fund to repay the bonds held by small investors.

Between 2015 and 2017, the Italian banking system spent over €4 billion in mandatory contributions to resolve four small banks.

The FITD, one of the two deposit insurance funds, had said it didn't have enough money to rescue the banks and that the voluntary scheme would not be activated due to a lack of agreement among its members.

Equity investments are a key part of Veneto Banca's business model, with the bank offering a range of equity products to its clients.

The bank's equity investments are managed by a team of experienced professionals who use a variety of strategies to generate returns for clients.

Veneto Banca's equity investments are focused on Italian and European companies, with a particular emphasis on small and medium-sized enterprises.

The bank's equity portfolio is diversified across various sectors, including industrials, consumer goods, and financials.

Veneto Banca's equity investments are designed to provide long-term growth opportunities for clients, with the bank's team actively managing the portfolio to maximize returns.

One of the key benefits of Veneto Banca's equity investments is the potential for capital appreciation, which can provide clients with a source of wealth creation over the long term.

The bank's equity investments are also designed to be flexible, allowing clients to adjust their portfolios in response to changing market conditions.

If you initiate an international transfer to a Veneto Banca Societa' Per Azioni bank account, you'll need the SWIFT code along with other essential details.

You can find your Veneto Banca Societa' Per Azioni SWIFT code on your bank statement, by logging into your online banking account, or by contacting Veneto Banca Societa' Per Azioni directly.

Traditional banks often process international transfers slowly and at a higher cost. As an alternative, the Qonto business account for international transactions provides a swift, cost-effective, and secure solution for transferring funds internationally.

The SWIFT code is crucial for routing the funds to the correct bank and branch, ensuring a secure and efficient transfer process.