Monte Dei Paschi Research Articles

General overview of the first 50 years of Economic Notes, 1972–2021

AbstractWe review the five different phases lived by Economic Notes during its first 50 years. First, its foundation and early phase—until 1983—received great support from Monte dei Paschi and also benefited from a windfall since Robert A. Mundell attracted to Siena an international network of top economists, policy makers and executives, facilitating high‐quality submissions to the Journal. When Mundell's meetings stopped (in 1978), Economic Notes had already secured a good reputation and had become a champion of a pluralist approach, accepting papers from different disciplines and views. In the second phase—from 1984 to the mid‐1990s—the Journal, led by a qualified Editorial Board lived continuity but also some new directions emerged. Economic Notes became better connected to the local Faculty of Economics. Also, the drive towards pluralism of the early years was refocused to safeguard access by different economic schools rather than different disciplines. In those years, Monte dei Paschi too transformed from a mostly regional bank into a national and international player, thus demanding less visibility support from the Journal. Those events blurred the initial mission and started distancing the Bank from the Journal. The third phase—from mid‐1990s to early 2000s—saw the maximum productivity and visibility of Economic Notes. Monte financed Conferences with great resonance also owing to an exceptional Advisory Board. In the fourth phase—from 2004, when the Conferences became rare, to 2012—the performance worsened. Communication between the Bank and the Journal grew more difficult, complicating any planning for the future. The fifth phase— from 2012 to 2019—aimed to relaunch the Journal without a significant support from the Bank, which had entered a period of difficulties of its own. The planned way out of this situation was to develop a series of Special Issues through dedicated Calls for Papers. As we show, that strategy delivered some results and, in effect, Economic Notes’ performance rebounded. Nevertheless, Monte was progressively disengaging from the Journal, which, eventually, was sold to Wiley, the publishing partner. The sixth and last phase of the Journal—from 2019 to 2021—under the new ownership by Wiley marked a gradual transformation. In the end, it seems that the publishing venture initiated in 1972 is still making progress and providing a pluralist forum for discussion. The journey of Economic Notes is still on!

The years of Monte dei Paschi's disengagement 2012–2019

AbstractWe review the critical phase of Economic Notes focusing on the years from 2012 to 2019 when the Journal suffered from the progressive disengagement by its founder, the Monte dei Paschi di Siena. The main reason for that gradual detachment is identified in the performance difficulties Monte was suffering from. Against the progressive fading away of the support provided by the Bank, the Journal entered a halo of the potential crisis itself. However, soon some measures were taken to allow Economic Notes to develop new and autonomous ways to project its own future. Specifically, we outline how the major changes in the structure of the Editorial Board were conducive to launching a new phase in which the Journal learned to rely more and more on low‐cost ways to gain visibility and attract quality submissions. That new strategy materialized through the widespread adoption of repeated Calls for Papers to generate the consequent Special Issues. The topics selected for the Calls for Papers were selected with a view at themes that were policy‐relevant and, whenever possible, not too far from the potential interest of Monte dei Paschi. We show that those Special Issues were functional to engineer a recovery in the Journal's performance. It was essentially owing to that resumed good health and recovered resonance that when Monte finally abandoned it Economic Notes was by and large equipped for the new venture.

Editorial policy of Economic Notes—1993–1998

AbstractThe context had radically changed when Economic Notes entered its third decade of activity. Specifically, the 1990s seemed to carry along a wave of conformity and of endangered pluralism in economic thought behind the mounting neoliberal economics mainstream. This paper reviews how the task of preserving pluralism in economic thought was resolutely pursued at Monte dei Paschi's publishing venture by placing the Journal on impartial grounds and keeping the door open to diversity.

The recent changes of Economic Notes, 2019–2021

AbstractWe assess that the passage of Economic Notes' property from the founding Bank Monte dei Paschi di Siena to Wiley occurred smoothly, and behind formal discontinuities, a real continuity occurred. Over the years 2012–2019, Economic Notes had starved because the difficulties of Monte obstructed the regular flow of financial support. The survival of the Journal was achieved through editorial innovations through attractive Calls for Papers and the ensuing quality submissions to feed Special Issues. These efforts restored the good health of Economic Notes when its ownership switched, and in the final 3 years considered here (2019–2021), the Journal showed no sign of worsening performance. Thus, we may state that the lifesaver passage under Wiley's ownership was not the swan song but the Journal is still alive and well.

Economic notes: The early years, 1972–1983

AbstractWe set the stage in 1972 when the bank Monte dei Paschi di Siena founded Economic Notes as part of its manifold scheme to reach two main goals: going international and acquiring a stronger position in the public discourse on economics and finance. Then, we highlight how the new Journal aimed at achieving Monte's goals by adopting a specific editorial style. Moreover, through the turmoil of its first dozen years, Economic Notes' bold strategy attracted top international authors and testimonials, selected topical issues, knitted theory and policy, embraced pluralist and forward‐looking views, helped the University of Siena to strengthen its international connections. The Journal quickly became a landmark for domestic, European and global debates owing also to favourable contingencies. A special blessing was that, would be Nobel laureate, Bob Mundell had just settled down in a shabby villa in the outskirts of Siena where he organized the Santa Colomba Meetings. Those informal summer workshops brought a free flow of the most authoritative experts on international money and finance exactly at the time the Bretton Woods monetary order collapsed and stagflation risks emerged. That greatly favoured the editorial success of the Journal throughout the 1970s.

Food and lifestyle education in Tuscan schoolchildren: 2018-2019 follow-up of a long-term campaign

Abstract Background Nutritional profile, physical activity level and sedentary behaviours, in preteen age, are determinants able to influence both short and long-term state of health, therefore succeeding in health education campaigns addressed to this age group is critical for the interested population. Is currently underway the multiannual follow-up of the Italian “sCOOL FOOD - Per un Futuro di tutto Rispetto” project of Monte dei Paschi Foundation of Siena, Tuscany, which offers year-round cycles of classes and workshops about the themes listed above. Our objective was to assess whether this intervention could significantly influence over time healthy, and unhealthy, behaviours of the participants. Methods We structured the follow-up as a prospective cohort study with one-group pretest-posttest design. We used the CAWI technique, building a questionnaire based on the Italian “OKkio alla Salute” survey, and collected data from the whole population of students enrolled in the project (in the school year 2018-2019 they were 3787, aged from 7 to 12) before and after the intervention. Afterwards, we conducted paired data analysis on the frequencies of specific behaviours. Results We analysed paired data from 310 respondents. Improvements were gained in: afternoon TV watching (OR 0.54; 0.34 - 0.84; p < 0.01), consumption of sweet (OR 0.39; 0.16 - 0.88; p < 0.05) and salty (0.42; 0.18 - 0.90; p < 0.05) snacks, attitude to play outdoors after school (OR 2.6; 1.21 - 6.04; p < 0.01), sedentary behaviour in leisure time (OR 0.27; 0.16 - 0.44; p < 0.0001), mean weekly sport activity (+0.14 days; +0.02 - +0.27; p < 0.05). No variable has deteriorated. Conclusions The improved compliance with healthy behaviours in the participants at this project suggests its viability as a health promotion campaign. Further parallel surveys on control groups are pending, in order to control potential confounders such as the seasonality of some habits and the awareness of the participants on the addressed subjects. Key messages A coordinated and cross-disciplinary food and lifestyle year-round education campaign at school can affect health determinants of children. School can correct unfavourable eating and lifestyle behaviours determined by family habits.

Bending and Breaking the Single Resolution Mechanism: The Case of Italy

AbstractThis article examines the political economy and law of bank resolution in the case of Italy – specifically, its treatment of three failing banks – the Monte dei Paschi, Veneto and Vicenza banks – which were resolved in 2016–17. These three cases stand out for the relatively large degree of discretion exercised by the national resolution and state aid authorities, ultimately with the permission of their European counterparts. This article examines the motivations of Italian authorities in lobbying the Commission for leeway in applying the bank recovery and resolution directive and analyses the intricacies of the legal framework to underline the extent of discretion exercised by policy‐makers. It concludes that the discretion visible in these three cases is not (entirely) contained within EU law, and that bending the law or turning a blind eye to infractions was key to understanding the EU approach to Italy.

Food and lifestyle education at primary and secondary school: an Italian project on health promotion

Abstract Background Nutrition and life styles have a crucial role as health determinants. In particular, an intervention on eating habits and physical activity/inactivity does heavily influence obesity and overweight prevention, alongside associated diseases. Preteen and teenage profile is critical for developing the state of health in adulthood, and it is heavily determined by the sociocultural family background. For this reason, school could become an important actor in health promotion, in the form of coordinated and cross-disciplinary courses about food and behaviors. The aim of the study is to verify the effect of an intervention of food education in several schools. Methods This cross-sectional study, originated from the “sCOOL FOOD” project of Monte dei Paschi Foundation of Siena, involves schools of southeastern Tuscany, Italy. The project currently engages various classes from primary and secondary schools in which year-round awareness campaigns are conducted. The activities consist in theory classes and workshops held by professionals or teachers of the school previously trained for the purpose. A same questionnaire was administered to families before and after each campaign, exploring eating habits, lifestyle and biometrics. The data analyzed so far date from October 2017 to May 2018. Wilcoxon signed-rank test was performed on the distributions of children BMI classes, defined according to IOTF cutoffs, obtained exclusively from participants who submitted both questionnaires. Results 308 paired records of data were collected as mentioned above. We found that, after the campaign, children BMI classes distribution shift towards reduction was statistically significant (z=-2.053; p < 0.05). Conclusions Since the intervention was able to influence a childhood health determinant, it could be an opportunity to compensate those family dynamics that could lead towards health disadvantages in adulthood. Key messages A coordinated and cross-disciplinary food and lifestyle year-round education campaign at school can impact on health determinants of children. School can correct unfavorable eating and lifestyle behaviors determined by family habits.

The Restructuring of Monte Dei Paschi di Siena. A Controversial Case in the EU Bank Resolution Regime

The new regulatory tools introduced in the EU banking recovery and resolution regime that aim to reduce the intervention of supervisory authorities constitute a challenge for legislators and market actors. This article examines the controversial aspects of Monte dei Paschi di Siena (MPS) rescue plans, taking into consideration the adopted restructuring options. Although MPS is not global systemically important its collapse determined a serious impact in the EU banking sector. This article argues that to benefit from financial aid MPS had to be bailed-in, measure that policymakers and regulators are not always ready to implement. MPS represented a real concern to the Italian Central Bank and the European Central Bank, and it demonstrated that banks rely on government bailout, something that it is difficult to change in the regulatory approach to failing credit institutions.

L'intervento della Banca Monte dei Paschi di Siena e il contributo del book-keeping nel "render conto" sulla gestione del terremoto del 1798

Through a historical approach, this study shows the role of book-keeping and, more generally, of accounting and accountability. In particular, we analyse the role of Monte dei Paschi di Siena Bank in the earthquake of 1798. Our research highlights the role of recording data in describing the main events and activities of the Bank. In June 1798, the Florentine Grand Duke approved a specific fund, called ‘Cassa delle restaurazioni’ (Fund for restructuration) and Monte dei Paschi di Siena Bank was designated for its management. The Tuscan government immediately supported the Fund through an initial deposit of 2.000 scudi. The local ecclesiastical heritage increased the fund with 3.000 scudi. The initial balance of 5.000 scudi was managed by the bank and they were immediately expended as funds to restore the ruined buildings. Therefore, based on a case study with archival sources, we analyse the administration of the whole fund. In doing so, we try to engage with the sub-research area of accounting for natural disasters. In this sense, our contribution is the exploration of a natural disaster at the end of the XVIII Century. We also contribute to increasing the historical research on the banking sector and the significant role of book-keeping, accounting, and accountability.

Western Commercial G-SIBs and the TBTF Mentality: Has the Designation Policy Been Effective to Make Global Banks Safer?

This study used financial indicators and bankruptcy scores to analyse financial health of 14 publicly traded G-SIBs headquartered in Western countries. It also applied the event-study methodology to detect how market discipline could have been affected by the request for the bailout of Banca Monte dei Paschi di Siena (BMPS). The results of financial indicators and bankruptcy scores show little evidence to believe that banks have gotten significantly safer in the post-crisis period. The application of the event-study methodology insinuates that market discipline might have been eroded as evidence of abnormal returns for all G-SIBs was detected following the bailout request for BMPS.

The Monte dei Paschi affaire: distressed banks and the European regulation on short selling

The European Regulation on short selling (SSR) has been applied to restrict hedge funds from short selling the stock of Monte dei Paschi di Siena (MPS) as part of a distressed securities strategy. In the MPS case, a distressed securities strategy was carried out based on short selling, despite the adoption of a temporary ban on short selling by means of purchasing put options from a market maker. Article 23 of the SSR provides that the national competent authorities (NCAs) may prohibit or restrict the execution of short sales in the event of a decrease in price by a given percentage during a single day’s trading for a given financial instrument. The temporary ban on short selling adopted by the NCAs or the ESMA under the SSR can be circumvented by means of an indirect use of the market making exemption. When adopting the ban and conceding the market making exemption, we take the view that the NCAs and the ESMA should require market makers to prohibit investors from increasing their net short positions in the focal stock.

Limits on State-Funded Bailouts in the EU Bank Resolution Regime

In the post-crisis environment, the new European policy orthodoxy insists on avoiding state-funded bailouts of banks in distress under all but the most exacting circumstances. This is reflected in the two distinct but interrelated sets of norms governing bank resolution actions: the Commission’s norms on state aids in the banking sector as reflected in the Banking Communication of July 2013; and the new special resolution regime for credit institutions and investment firms adopted in May 2014 in the form of the Bank Recovery and Resolution Directive. The paper discusses the anti-bailout objective of the two frameworks, the way in which this is reflected in their operative provisions, and the degree to which the latter result in a truly binding regime, or admit exceptions and variations. It is shown that the overall effect of the provisions is to render outright bailouts almost impossible. Even when an intervention is permitted, this may take place only in prescribed forms and at a late stage within the resolution system’s financing cascade, which insists on substantial bail-in of ailing banks’ private claimholders, amounting to at least 8% of total liabilities, as a prior condition. The only exception is precautionary recapitalization; but this applies only to solvent institutions and cannot cover past losses. It may be wondered, however, whether a policy of strict insistence on bail-in in all cases of undercapitalization is wise. The problem has recently come to a head due to the troubles of the Italian banking system, with its huge pile of bad assets and numerous weak banks, including the NPL-infested Monte dei Paschi di Siena. The Italian banking system has a sufficient volume of bail-inable junior debt, thus making bail-in technically feasible. But at what cost?

The future of financial regulation: who should pay for the failure of American and European banks?

Acknowledgements List of abbreviations Introduction Part I. A Chronological Presentation of Crisis Events January 2007-December 2014 Part II. Bail-Out and/or Bail-In of Banks in Europe - A Country-by-Country Event Study on Those European Countries Which Did Not Receive Outside Support: 1. United Kingdom: Northern Rock, Royal Bank of Scotland (RBS), Lloyds Banking Group 2. Germany: IKB, Hypo Real Estate, Commerzbank, Landesbanken 3. Belgium, France, Luxembourg: Dexia 4. Benelux: Fortis, ING, SNS Reaal 5. Italy: Monte dei Paschi de Siena 6. Denmark: Roskilde Bank, Fionia Bank and the others vs Amagerbanken and Fjordbank Mors Part III. Bail-Out and/or Bail-In of Banks in Europe - A Country-by-Country Event Study on Those European Countries Which Received IMF/EU Support: 7. Iceland: Landsbanki, Glitnir and Kaupthing 8. Ireland: Anglo Irish Bank, Bank of Ireland, Allied Irish Banks 9. Greece: Emporiki, Eurobank, Agricultural Bank 10. Portugal: Caixa Geral, Banco Espirito Santo, Millennium Bank 11. Spain: Bankia and the other ex-cajas 12. Cyprus: Bank of Cyprus, Popular Bank (Laiki) Part IV. The Tarp Program and the Bailing Out (and Bailing In) of US Banks: 13. The roles of the FDIC, the Treasury and the Fed in the crisis 14. USA: Bear Stearns, Merrill Lynch and Lehman Brothers 15. USA: Countrywide, IndyMac, Washington Mutual and Wachovia 16. USA: AIG, Citibank and Bank of America: zombies too big to fail? Part V. Summary of the Micro Studies Part VI. Political and Regulatory Responses to the Crisis - To Bail Out or To Bail In, That's the Question: 17. Future bail-outs in the United States under Dodd-Frank and OLA 18. Future bail-outs in the European Union under the Single Resolution Mechanism and the Bank Recovery and Resolution Directive Conclusion: towards host-country supervision and resolution? Addendum Bibliography Index.

La economía política de los hospitales locales en la Cataluña moderna

The aim of this paper is to highlight how hospitals, in Catalonia since the late Middle Ages to the currently, adopted a governance model which resulted in the creation and preservation of hospitals or care institutions in virtually all municipalities, even in small, whose frame legal was the private or civil law. Firstly, we observed how individuals were motivated not only by philanthropy or charity, but also by a need to contribute something to the community after their death, to give back part of the assets the testators had accumulated during their lifetimes, as citizens who had benefited from their positions. Secondly, we observed that the small local private institutions merged with municipal hospitals, but that their assets were managed separately from those of the town. Third, as well as its care function, the hospital was also an economic agent that operated along similar lines to the Italian “Monte dei Paschi”. It provided loans to working class citizens at a modest rate of interest. The meaning of the institution was found to be more complex than the simple provision of care services. It acquired a specific value in the identity of the community, it became one of the centers of debate in public life and it took on an economic and financial meaning that strengthened the construction of the citizens’ collective identity.

The EU-Wide Stress Tests: A Storm Before a 'New Order' of the Financial Market. The Italian Case.

European banks have been recently evaluated by the ECB’ stress tests, which verified their level of efficiency. The checks on the so‑called ‘systemic’ credit institutions indicate their ability to face the difficulties caused by a possible new economic distress. Such an examination, designed ‘to evaluate the health of the banks’, was based on the measurement of the capital amount of the banks (i.e. amount of cash available for absorbing sudden losses), hired a benchmark for identifying the critical threshold to overcome risks. The analysis was not, however, purely a quantitative one; it also covered the quality of the assets held by the institutions at issue (the AQR). The estimates (linked to percentage calculations which’s evaluations reflect an suitable consideration of risks) allow to detect the capital increases needed to avoid impasse situations in the event of potential, future crises. Additionally, the so-called Comprehensive Assessment (CA), conducted by the ECB, was activated: it identifies an important step towards the definition and effective implementation of the ‘Single Supervisory Mechanism’; indeed, this form of prudential analysis is indirectly aimed at the restoring of banking stability conditions deemed to be equal for all the Eurozone systemically important institutions. The prudential analysis of Italian institutions creates a banking system in which – among the 15 banking groups under examination – the majority of banks have passed the tests only with very tight margins while Monte dei Paschi and Carige did fail in doing so. Therefore, we are facing a delicate moment in the history of the Italian banking sector, as it can be seen, among other things, from the obvious difficulties faced by the industry’s incumbents forced (after the results were published) to proceed promptly to a large recapitalization.

Probing Short-Range Protein Brownian Motion in the Cytoplasm of Living Cells

The translational motion of small molecules in cells appears to be suppressed compared to what is observed in dilute solutions. Although, the rotation of small proteins is almost unhindered, pointing out a local aqueous environment. Different theoretical models provide explanations for this apparent discrepancy but with predictions that drastically depend on the nanoscale organization assumed for macromolecular crowding agents. A conclusive experimental test of the nature of the translational motion in cells is still missing owing to the lack of techniques capable of probing protein motion with the required temporal and spatial resolution. We show that fluorescence-fluctuation analysis of raster scans at variable time scales can provide this information. By using GFP, we measure protein translational motion at the unprecedented time-scale of 1 microsecond, unveiling unobstructed Brownian motion from 25 to 100 nanometers, and partially-suppressed diffusion above 100 nm. Experiments on in vitro model systems attribute this effect to the presence of relatively immobile structures rather than to diffusing crowding agents. In this regard, internal membranes (e.g. the ER sheets, vesicles, Golgi apparatus, etc.) appear to be the more likely candidates as selective disruption of the microtubules network by treatment with Nocodazole did not significantly alter GFP behavior in the cytoplasm. Also, the same measurement in a structurally-different (e.g devoid of membranes) intracellular environment, such as the nucleoplasm, yields a different behavior, in which GFP motion is never coincident with that in a dilute solution. Finally, we believe the present findings coupled with use of genetically-encoded fluorescent markers pave the way to novel studies of biomolecular processes in live cells at the physiologically-relevant spatio-temporal scale. Supported by grants NIH P41-GM103540 and NIH P50-GM076516 (grants to EG), MIUR under FIRB-RBAP11X42L and Fondazione Monte dei Paschi di Siena (grants to FB).

Fluorescence Fluctuation Microscopy Techniques to Study mRNA Synthesis and Dynamics

1627-Pos Board B578 Probing Short-Range Protein Brownian Motion in the Cytoplasm of Living Cells Carmine Di Rienzo 1,2 , Enrico Gratton 3 , Fabio Beltram 1,2 , Francesco Cardarelli 2 . NEST, Scuola Normale Superiore, Pisa, Italy, 2 Center for Nanotechnology Innovation @NEST, Istituto Italiano di Tecnologia, Pisa, Italy, 3 Laboratory for Fluorescence Dynamics, Department of Biomedical Engineering., University of California, Irvine, CA, USA. The translational motion of small molecules in cells appears to be suppressed compared to what is observed in dilute solutions. Although, the rotation of small proteins is almost unhindered, pointing out a local aqueous environment. Different theoretical models provide explanations for this apparent discrepancy but with predictions that drastically depend on the nanoscale organization assumed for macromolecular crowding agents. A conclusive experimental test of the nature of the translational motion in cells is still missing owing to the lack of techniques capable of probing protein motion with the required temporal and spatial resolution. We show that fluorescence-fluctuation analysis of raster scans at variable time scales can provide this information. By using GFP, we measure protein translational motion at the unprecedented time-scale of 1 micro- second, unveiling unobstructed Brownian motion from 25 to 100 nanometers, and partially-suppressed diffusion above 100 nm. Experiments on in vitro model systems attribute this effect to the presence of relatively immobile structures rather than to diffusing crowding agents. In this regard, internal membranes (e.g. the ER sheets, vesicles, Golgi apparatus, etc.) appear to be the more likely candidates as selective disruption of the microtubules network by treatment with Nocodazole did not significantly alter GFP behavior in the cytoplasm. Also, the same measurement in a structurally-different (e.g devoid of membranes) intra- cellular environment, such as the nucleoplasm, yields a different behavior, in which GFP motion is never coincident with that in a dilute solution. Finally, we believe the present findings coupled with use of genetically-encoded fluores- cent markers pave the way to novel studies of biomolecular processes in live cells at the physiologically-relevant spatio-temporal scale. Supported by grants NIH P41-GM103540 and NIH P50-GM076516 (grants to EG), MIUR under FIRB- RBAP11X42L and Fondazione Monte dei Paschi di Siena (grants to FB).

Space design as an expressive device in ambient marketing: Case studies of Deutsche Bank and Banca Monte dei Paschi di Siena

This paper opens new insights into the use of corporate architecture in ambient marketing communications. As an expressive system, architectural discourse transcends functional use-value, while providing potent contextual cues that enhance brand engagement. Within the integrated marketing communication mix, spatial signifiers create epistemic and experiential value. Two case studies from the European finance sector exemplify the communication relevance of architectural design. The interpretative methodology, based on a contrasting semiotic analysis, explores the meaning-generating potential of the square, a central structural element of the headquarters of Deutsche Bank and Banca Monte dei Paschi di Siena. Symbolic correlations between spatial organization and connotative implications show the salient features of aesthetic place-making in financial communication. This paper contends that corporate architecture not just serves as a support for ambient marketing initiatives, but its sign value as an urban and cultural touch-point represents a symbolically charged communication tool in its own.

The Italian Banking System: Banca Monte dei Paschi's Scandal and the Euro Area's Sovereign Debt Crisis

The financial woes experienced by the Monte dei Paschi di Siena (MPS) and by a handful of other Italian banks in which foundations have played a prominent role offer an opportunity to reflect on three interrelated topics. The first issue is the evolution of the Italian banking system and banking legislation over the past decades to explain the rather distinctive governance structure of these banks. The second issue is the unfolding of the sovereign debt crisis in the euro area, which set the broader context in which the MPS scandal and the subsequent financial troubles of other banks took place. The third issue is the main response of the European Union and euro area to the sovereign debt crisis, namely, the proposal to create an EU banking union, which in turn triggered strong supervisory actions by the Bank of Italy in preparation for the handover of banking supervision to the European Central Bank.