Italy's Banca Monte dei Paschi di Siena has appointed banking veteran Luigi Lovaglio as chief executive after ousting Guido Bastianini from the role.
The board of directors of the troubled state-owned lender unanimously approved Mr Lovaglio’s appointment as chief executive and general manager, “taking into consideration his relevant experience at an international level, combined with a deep knowledge of the Italian banking sector”, according to a statement on Monday.
Mr Bastianini, named by a previous government with the support of the populist Five Star Movement, had fallen out of favour with prime minister Mario Draghi's administration over strategy and management, people with knowledge of the matter have said.
The leadership change comes at a challenging time for the historic lender, with the government seeking approval from the European Union for a five-year business overhaul plan after a sale to UniCredit fell through last year. Monte Paschi has been a burden for the government since it was first bailed out in 2009, after being undermined by souring loans and derivatives deals that backfired.
On Monday, Monte Paschi also reported a fourth-quarter loss of €78.6 million as it set aside more money for bad loans. – Bloomberg