Finance
Monte dei Paschi board expresses full confidence in CEO Lovaglio
Published by Global Banking & Finance Review®
Posted on December 8, 2025
1 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 8, 2025
1 min readLast updated: January 20, 2026
Monte dei Paschi di Siena supports CEO Lovaglio amid a criminal investigation into the Mediobanca takeover, confirming compliance with regulatory requirements.
MILAN, Dec 5 (Reuters) - Monte dei Paschi di Siena on Friday expressed support for its chief executive, who is under criminal investigation in connection with the bank's takeover of Mediobanca.
"The board ... unanimously renewed its full confidence in Chief Executive Luigi Lovaglio, confirming he complies with ... requirements set for bank executives," the bank said, referring to regulatory requirements.
MPS, Italy's oldest bank, completed a hostile takeover of Mediobanca in September, securing a majority stake. Milan prosecutors are investigating alleged market manipulation and obstruction of regulators in the deal.
Lovaglio, 70, and MPS' two biggest shareholders are targets of the probe. The shareholders are Italian construction tycoon Francesco Gaetano Caltagirone and Delfin, the holding company of late Ray-Ban billionaire owner Leonardo Del Vecchio.
Mediobanca has historically been insurer Assicurazioni Generali's main shareholder, and prosecutors have alleged the manipulation was intended to strengthen the two investors’ influence over Mediobanca and Generali.
(Reporting by Valentina Za; Editing by Cynthia Osterman)
Market manipulation refers to illegal activities that distort the natural supply and demand of a financial market, often to create artificial prices or trading volumes to benefit the manipulator.
A hostile takeover occurs when one company attempts to acquire another against the wishes of the target company's management. This often involves purchasing a controlling stake in the target company through open market purchases or a tender offer.
Compliance in banking involves adhering to laws, regulations, and internal policies to ensure that financial institutions operate within legal frameworks and maintain ethical standards.
An investigation in finance typically involves examining financial records and transactions to uncover potential fraud, misconduct, or regulatory violations within a financial institution.
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