Fast Arbitration for small investors
The elderly and those who have lost the most will get preference in upcoming arbitration, free of cost, for investors left with worthless bonds after the rescue of four small lenders, Banca Etruria, Banca Marche, CariFe and CariChieti, according to a draft decree of Italian Govt. Twelve panels of five members each will be set up and will make their recommendations to the National Anti-Corruption Authority (ANAC).
The panels will be made up of officials who have performed the same roles for the Bank of Italy or stock exchange commission (CONSOB). Arbitration will take a maximum of 120 days and will be decided by a majority vote.
The arbitrators will be tasked with deciding whether bank officials who sold investors subordinated bonds – a relatively risky investment instrument – did so according to the rules of transparency and correct practice.
The four failed lenders’ 3.6-billion-euro government-decreed rescue in November, financed by healthy Italian banks, saved jobs and protected account holders, but shares and bonds in the banks are now worthless. The small investors whose savings went up in smoke are seeking government compensation.
The government has set up a 100-million-euro fund which savers’ groups say will not be enough.
FASANO avvocati, in cooperation with MSDA, launched a web site (in Italian) dedicated to such collective claims rising up: www.investimentotradito.com