MILAN (Reuters) – A deal for the Italian government to sell Monte dei Paschi to UniCredit collapsed on Sunday https://www.reuters.com/business/finance/exclusive-italy-unicredit-set-call-off-talks-over-monte-dei-paschi-sources-2021-10-23/#:~:text=LONDON%2FMILAN%2C%20Oct%2024%20(,Tuscan%20bank%20to%20private%20hands after the two sides failed to agree terms.

Rome is still trying to solve the problem of the Tuscan lender, on which it has spent billions since 2008’s financial crisis.

This timeline shows key events from the history of Monte dei Paschi, the MPS. Its origins date back to 15th-century Italy and have turned it into the banking nightmare.

NOVEMBER 2007, MC: MPS purchases Antonveneta (Santander) for 9 Billion Euros in Cash, less than a month after the Spanish bank bought the Italian regional lender for 6.6 billion.

JANUARY 2008 – MPS Announces a 5 Billion Euro Rights Issue, a Separate 950 Million Euro Capital Increase Reserved to JPMorgan (NYSE :), a 2.2 Billion euro Tier2 Bond issue, and a 1.95 Billion euro Bridge Loan to Fund the Antonveneta Deal.

March 2008: The Bank of Italy is led by Mario Draghi and approves Antonveneta’s takeover. However, MPS must rebuild its capital.

March 2009: MPS sells special bonds worth 1.9 billion to Italy’s Treasury in order to strengthen its financial position.

JULY 2011, MPS raises 2.15 Billion Euros in rights issues ahead of European Stress Test results.

September 2011: The Bank of Italy offers 6 billion euro in emergency liquidity for MPS via repo deals, as the sovereign debt crisis in the Eurozone escalates.

March 2012 – MPS suffers a loss in 2011, a staggering 4.7 billion Euros, due to billions of writedowns for goodwill related to deals such as Antonveneta.

MAI 2012 – MPS headquarters is searched while prosecutors probe whether MPS misled regulators regarding the Antonveneta purchase.

JUNE 2012: MPS requests Italy’s Treasury for an additional 2 billion euro in special bonds.

OCTOBER 2012 – Shareholders approve a 1 Billion Euro share issue aimed towards new investors.

FEBRUARY 2013: MPS estimates that losses from derivative trades between 2006 and 2009 amount to 730,000,000 euros.

March 2013: MPS suffers a loss of 3.17 billion euro in 2012 due to plunging market prices for its huge Italian government bonds.

MARS 2014: MPS reports a net loss in 2013 of 1.44 Billion Euros.

June 2014: MPS raises $5 billion in an extremely discounted rights issue, and pays the state back 3.1 billion euro.

October 2014: MPS ranks as the worst in Europe-wide stress testing with a capital shortage of 2.1 Billion euros.

OCTOBER 2014 – After being found guilty by misleading regulators, the former chairman of MPS, chief executive officer and chief finance officer were sentenced for three-and-a half years.

NOVEMBER 2014- MPS to Raise up to 2.5 Billion Euros After Stress Test Results

JUNE 2015 – MPS raised $3 billion in cash to cover a record 5.3 billion euro loss on 2014 due to poor loan writings. It pays the 1.1 billion Euro state-underwritten special bond.

JULY 2016, MPS Announces A New 5 Billion Euro Rights Issue. MPS also plans to Offload 28 Billion euros of Bad Loans. European Bank Stress Tests show that MPS has negative equity during a slump.

DECEMBER 2016: MPS requests assistance under the precautionary recapitalisation program after its failed cash call. The bank’s capital requirement is set at 8.8 Billion Euros by the ECB.

July 2017 – The ECB declared MPS solvent. In return for a 68% share, the EU Commission cleared the bailout. It cost 5.4 billion euro for the state. For a total 8.2 billion, private investors contributed 2.8 billion euros.

FEBRUARY 2019, MPS declares profit for 2018 and lowers EU-restructuring targets.

OCTOBER 2019 – MPS completes Europe’s biggest bad loan securitisation deal, shedding 24 billion euros in bad debts.

FEBRUARY 2020 – MPS posts 1 billion euro 2019 loss.

MAI 2020 – Marco Morelli, CEO of MPS, resigns in an appeal to Rome for a new partner. Guido Bastianini, 5-Star-backed Guido Bastianini replaces him.

AUGUST 2020- Italy has set aside 1.5 billion euros for MPS to assist it in meeting a mid-2022 reprivatisation deadline.

OCTOBER 2020 – MPS shareholders approve a plan sponsored by the state to reduce soured loans to 4.3% total lending. As a result of this decree, Italy’s share falls to 64%.

OCTOBER 2020 – A Milan court convicts MPS’ former chairman and CEO for falsifying accounting. This surprise verdict forces MPS to increase legal risk provisions.

DECEMBER 2020: MPS claims it will need up to 2.5Billion Euros in capital.

DECEMBER 2020: Italy approves tax incentives to bank mergers, which will provide a benefit of 2.3 billion euros for an MPS buyer.

JANUARY 2021 – MPS opens its books to potential partner.

FEBRUARY 2021: MPS reports a loss of 1.69 billion euros for 2020.

APRIL 2021, Andrea Orcel is appointed UniCredit CEO.

JULY 20,21 – UniCredit engages in exclusive discussions with Italy’s Treasury to purchase “selected portions” of MPS. This is just a day after European banking stress testing results showed that smaller banks’ capital would collapse.

OCTOBER 2021: UniCredit negotiations collapse as the parties fail to reach an agreement on the fair value of selected assets at MPS. Rome must ask the European Union to extend the deadline to return the bank to private ownership.

($1 = 0.8593 euros)