Monte Paschi's touted new CEO in Frankfurt to meet ECB: source

Tue Sep 13, 2016 1:24pm EDT
 
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By Paola Arosio

MILAN (Reuters) - Marco Morelli, the frontrunner to take over the helm at troubled Italian lender Banca Monte dei Paschi di Siena (BMPS.MI: Quote), was in Frankfurt on Tuesday to meet regulators at the European Central Bank, a source familiar with the matter said.

Morelli traveled to Frankfurt with Monte dei Paschi Chairman Massimo Tononi and the head of the bank's nomination committee, Alessandro Falciai, the source added.

The appointment of Morelli, Monte dei Paschi's chief financial officer until 2010, has already received an informal nod from the ECB, a separate source said over the weekend.

But another source close to the matter said the selection must go to the ECB's supervisory board for a formal vote and the governing council must also sign off.

Morelli, currently head of Bank of America Merrill Lynch (BAC.N: Quote) in Italy, has been widely tipped to become CEO since Fabrizio Viola agreed to step down last Thursday.

Viola has overseen two share sales since 2014, raising 8 billion euros ($9 billion) which Monte dei Paschi has burned through. Bankers have said a new face was needed to win investors over to a third issue, and avert a banking crisis that would send shockwaves across Europe.

Morelli and Monte dei Paschi representatives were not immediately available to comment. The ECB declined to comment.

Tononi and Falciai will discuss the choice of the new CEO in a first meeting with the ECB on Tuesday, according to the first source.   Continued...

 
Marco Morelli gestures during a meeting in Milan November 11, 2011.    REUTERS/Imagoeconomica