GENOA (Reuters) - Italy’s Banca Carige (CRGI.MI) appointed a new board on Friday to take the reins of the troubled regional lender, ending more than 12 months under a temporary special administration appointed last year to stem years of losses and mismanagement.
Since being placed under special administration by the European Central Bank at the beginning of last year, Carige has been kept afloat by other Italian banks, which shouldered the bulk of a 900 million euro ($1 billion) rescue.
After attempts to attract a buyer failed, a depositor protection fund (FITD) financed by Italian banks had to step in to rescue the Genoa-based lender and now holds an 80% stake in Carige after a 700 million euro ($782 million) capital increase.
The fund appointed the majority of administrators, including former UniCredit (CRDI.MI) deputy chairman Vincenzo Calandra Bonaura as Carige’s chairman.
The newly-elected board will meet soon after Friday’s shareholder meeting to appoint former Intesa Sanpaolo (ISP.MI) executive Francesco Guido as chief executive.
Reporting by Andrea Mandalà; Editing by James Mackenzie and David Holmes