(ANSA) – ROME, JUN 20 – Cryptocurrencies pose risks similar to the subprime crisis that sparked the financial crisis of 2008, CONSOB Chair Paolo Savona said Friday.
“We cannot fail to notice the analogy that is being established with the roots of the 2008 financial crisis due to the spread of complex derivatives that contained credits that were difficult to repay (subprime) and caused serious economic consequences, also putting the security of the State at risk”, said the head of the Milan bourse regulator.
“The most recent turbulence has been contributed to by the movement of the seismic fault of cryptocurrencies underlying the traditional monetary and financial territory, with possible outlets of unfathomable proportions; the risk has re-emerged under the pressure of the illusion of easy gains so well described by Carlo Collodi in Pinocchio’s Field of Miracles and has found nourishment in the success achieved by those who have exploited the opportunity offered by the development of information technologies”.
He added that 52 complaints to CONSOB had been made by banks involved in takeover manoeuvres and there was a “difficulty of dialogue” with the European Central Bank.
Since the end of 2024, said Savona, “a significant part of the banking and financial system has taken important initiatives, launching 6 public purchase and/or exchange offers which, beyond the usual work required in implementation of the current regulations, have generated 52 complaints or requests for clarification by the same parties involved in resolving disputes arising from the absence of prior agreements between the parties, a condition which is also not necessary in the spirit of contestability typical of the competitive market economy”.
The government’s ‘golden power’ should be coordinated with EU rules, Savona added.
Some of the banks involved in the ops are UniCredit, which is bidding for Banco BPM, and Monte dei Paschi di Siena (MPS), which is trying to take over Mediobanca, itself biding for Generali’s wealth arm. (ANSA).
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“We cannot fail to notice the analogy that is being established with the roots of the 2008 financial crisis due to the spread of complex derivatives that contained credits that were difficult to repay (subprime) and caused serious economic consequences, also putting the security of the State at risk”, said the head of the Milan bourse regulator.
“The most recent turbulence has been contributed to by the movement of the seismic fault of cryptocurrencies underlying the traditional monetary and financial territory, with possible outlets of unfathomable proportions; the risk has re-emerged under the pressure of the illusion of easy gains so well described by Carlo Collodi in Pinocchio’s Field of Miracles and has found nourishment in the success achieved by those who have exploited the opportunity offered by the development of information technologies”.
He added that 52 complaints to CONSOB had been made by banks involved in takeover manoeuvres and there was a “difficulty of dialogue” with the European Central Bank.
Since the end of 2024, said Savona, “a significant part of the banking and financial system has taken important initiatives, launching 6 public purchase and/or exchange offers which, beyond the usual work required in implementation of the current regulations, have generated 52 complaints or requests for clarification by the same parties involved in resolving disputes arising from the absence of prior agreements between the parties, a condition which is also not necessary in the spirit of contestability typical of the competitive market economy”.
The government’s ‘golden power’ should be coordinated with EU rules, Savona added.
Some of the banks involved in the ops are UniCredit, which is bidding for Banco BPM, and Monte dei Paschi di Siena (MPS), which is trying to take over Mediobanca, itself biding for Generali’s wealth arm. (ANSA).
Read article…
