derivative loss
Banca Italease has seen its share price drop far beyond its
worst expectations, key staff removed, a restructuring plan put in
place, and much more, all because of its exposure to bad
derivatives.
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Potentially, a similar fate, although perhaps less far reaching,
awaits UniCredit SpA following the announcement last week by the
director general of UniCredit Banca d’Impresa, Gianni Coriani, that
the bank’s corporate clients had some €1bn in losses linked to
derivatives against overall contracts worth some €30bn.
However, according to Edith Holzer, head of Marketing &
Communications at the Vienna branch of UniCredit Global Leasing
S.p.A, “we do not expect any impact on leasing side since UniCredit
Global Leasing does not do any derivative business and is not
directly involved”.
Last week UniCredit’s shares went down 1.7 per cent to €5.89 as
a result of the derivative scare.
An analyst told the Italian media: “None of us [analysts] knew
what the situation exactly was and the market fears it may be more
severe than what was announced in the show.”
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By GlobalDataAccording to newspaper reports, UniCredit said that to date 56
clients have pressed charges against UniCredit over derivatives but
only four won their cases in the lower courts. UniCredit has said
it will appeal these four rulings.
