Case Study: Banca Monte dei Paschi di Siena

June 29th, 2017 by Kara in Case Studies

  By: Nicola Bilotta Between the beautiful hills of Tuscany stands Siena. Siena is a magical medieval city, which attracts tourists for its history and its monuments. But Siena hides many secrets. The destiny of the city has always been bound to Banca Monte dei Paschi di Siena (MPS) which is currently facing a significant crisis and is close to bankruptcy. The future of MPS is unclear, and plans for private recapitalization have failed. In December 2016, the Italian government approved a public fund of 20 billion euros to infuse capital inside ...

Case Study: Iceland’s Banking Crisis

June 13th, 2017 by Kara in Case Studies

By: Anh Nguyen Introduction Iceland’s financial collapse in 2008 was the biggest any country had ever suffered relative to its size. At the time of the crisis, total assets of its three largest banks were 10 times the nation’s GDP and 20 times the state budget (“How did Iceland clean up its banks?”). The underlying causes of the downfall lie in reckless behaviors, lack of transparency and greed. However, unlike the US, by February 2016, Iceland had sentenced 29 bankers to prison for their role in the crash. The Players Glitnir Bank The third largest ...