From Reuters:
Hedge funds up bets against Italy's Monte Paschi
Big-name London hedge funds Odey Asset Management and Egerton Capital are among those upping their bets against Monte dei Paschi di Siena (BMPS.MI) in recent days, after revelations the troubled Italian bank faces heavy losses.Recently:
Italy's third-biggest bank is under investigation for an opaque series of derivatives and structured finance contracts between 2007 and 2009 that could cost it 720 million euros. The scandal surrounding the world's oldest bank, which is already in need of a 3.9 billion euro ($5.34 billion) state bailout, has become a campaign issue three weeks before Italy holds national elections.
Shares in the Monte Paschi are now the most in demand in Italy's FTSE MIB .FTMIB blue-chip index for short-selling by hedge funds, with 75 percent of those of its shares available to borrow - the "lending pool" supplied by institutional investors - now out on loan, according to data group Markit....MORE
Scandal: "Bank of Italy steps in to investigate ‘hidden' derivatives deals"
BSD Crispin Odey and the Fifth Best Hedge Fund in the World, 2012
See also:
From ValueWalk:
Odey Goes Long Spanish, Italian and Portuguese Sovereign Debt
And The Telegraph:
Crispin Odey backs distressed loans fund
FT Alphaville has been on top of Monte dei Paschi di Siena for going on two years, most recently last Tuesday:
A Grilli grilling
Italy’s economy and finance minister Vittorio Grilli was explaining to the Parlamento Italiano on Tuesday exactly what the hell’s been going on at the 541 year-old Monti dei Paschi di Siena....
