ITALY/GERMANY: ITALIAN GOVERNMENT APPROVES BANK OF ITALY REFORMS TO LIMIT POWERS OF BANK CHIEF ANTONIO FAZIO
Record ID:
566189
ITALY/GERMANY: ITALIAN GOVERNMENT APPROVES BANK OF ITALY REFORMS TO LIMIT POWERS OF BANK CHIEF ANTONIO FAZIO
- Title: ITALY/GERMANY: ITALIAN GOVERNMENT APPROVES BANK OF ITALY REFORMS TO LIMIT POWERS OF BANK CHIEF ANTONIO FAZIO
- Date: 1st September 2005
- Summary: (BN09) ROME, ITALY (SEPTEMBER 2, 2005) (REUTERS) 1. WIDE OF EXTERIOR GOVERNMENT HOUSE 0.04 2. SLV EUROPEAN UNION AND ITALIAN FLAGS 0.08 3. SLV SECURITY AT ENTRANCE 0.11 4. SLV ROBERTO CALDEROLI OF NORTHERN LEAGUE AND MINISTER OF REFORM (DARK GREY HAIR, BLACK SUIT), WALKING IN 0.21 5. WIDE OF JOURNALISTS 0.24 6. SLV CARABINIERI (POLICE) AND VEHICLE ON SQUARE 0.27 7. SLV FRANCESCO STORACE FROM NATIONAL ALLIANCE (BALDING, BLACK SUIT, YELLOW TIE), WALKING IN 0.35 8. SLV ITALIAN PRIME MINISTER SILVIO BERLSUCONI CONVOY ARRIVING (BERLUSCONI IN SECOND CAR) 0.52 9. SLV INTERIOR MINISTER GIUSEPPE PISANU (SMALL, BEHIND BODYGUARDS, WAVES, BACK OF BALDING HEAD) ARRIVING 1.09 10. WIDE OF JOURNALISTS AT ENTRANCE 1.12 (W1) FRANKFURT, GERMANY (SEPTEMBER 1, 2005) (REUTERS) 11. WIDE OF EUROPEAN CENTRAL BANK EXTERIOR 1.18 12. SLV ITALIAN CENTRAL BANK GOVERNOR ANTONIO FAZIO WALKING ALONG TALKING TO OTHER PEOPLE 1.35 (BN09) ROME, ITALY (SEPTEMBER 1, 2005) (REUTERS) 13. VARIOUS EXTERIORS BANK OF ITALY HEADQUARTERS/ SECURITY 1.47 14. WIDE OF BANK OF ITALY ENGRAVED ON BUILDING 1.50 15. PAN OF BANK BUILDING WITH BUS PASSING ALONG STREET 2.02 16. WIDE OF PROFESSOR MELORIA MESCHI, ASSOCIATE PROFESSOR ECONOMICS, JOHN CABOT UNIVERSITY 2.06 17. SCU (SOUNDBITE) (English) PROFESSOR MELORIA MESCHI, ASSOCIATE PROFESSOR ECONOMICS, JOHN CABOT UNIVERSITY, SAYING: "And in terms of international consequences there is one problem with credibility. The credibility of the Bank of Italy was very high, they had a very high reputation which is now being ruined, if I may say so, by this scandal, by what is happening now. 2.26 17. VARIOUS EXTERIORS BANK OF ITALY HEADQUARTERS 2.35 18. WIDE OF BANK SIGN 2.40 19. SLV BANK ENTRANCE 2.47 20. SCU (SOUNDBITE) (English) PROFESSOR MELORIA MESCHI, ASSOCIATE PROFESSOR ECONOMICS, JOHN CABOT UNIVERSITY, SAYING: "Well I think Fazio should have resigned at the very beginning of this, at the moment when this thing started leaking out he should have... 3.02 (W1) FRANKFURT, GERMANY (FILE - JANUARY 13, 2005)(REUTERS) 21. WIDE OF MEETING 3.07 22. CLOSE OF FAZIO DRINKING COFFEE 3.11 23. CLOSE OF PRESIDENT OF THE ECB, JEAN-CLAUDE TRICHET 3.15 24. PAN OF MEETING ROOM 3.20 25. SLV FAZIO TALKING TO A MAN 3.22 26. WIDE OF FAZIO SITTING IN THE MEETING 3.25 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 16th September 2005 13:00
- Keywords:
- Location: ROME, ITALY/ FRANKFURT,GERMANY
- City:
- Country: Italy Germany
- Reuters ID: LVA5OSS56MOO0K9HW9FAYHXB9ROI
- Story Text: Italian government approves Bank of Italy reforms to
limit the powers of the central bank chief, a post
currently held by Antonio Fazio.
The Italian government approved on Friday (September
2) a reform of the Bank of Italy, trimming the powers of
bank chief Antonio Fazio and curbing the governor's
open-ended mandate, Communications Minister Mario Landolfi
said on Friday.
The reform, which must be approved by parliament to
non-renewable mandate. It also foresees more transparency
and decision-making by committee.
The government decided to reform the central bank after
Fazio, who has been governor since 1993, was accused of
favouring Italian lenders over foreign rivals in banking
bids.
The age ceiling was opposed by the Northern League
party, which is a member of the ruling coalition and has
proved Fazio's most staunch defender.
Without the limit, Fazio, who says he acted properly in
the takeovers, could theoretically ahve stayed for years at
the bank where he has worked since 1960 and been governor
since 1993.
The reform will be attached to a bill that has
languished in parliament for more than a year, but that the
government has pledged to vote into law by May 2006.
Critics have accused Fazio of favouring Banca Popolare
Italiana in its fight with Dutch Bank ABN AMRO for control
of Italian lender Banca Antonveneta.
Fazio overruled the Bank of Italy's own analysts in
allowing the Pop Italiana bid, while wiretaps by
magistrates showed both he and his wife, Maria Cristina,
advised the bank's chief executive about how to proceed
with the offer.
The Fazio scandal broke in July with the leaking of
wiretaps that revealed the governor's close relationship
with Pop Italiana's chief executive. The saga has dominated
the Italian media ever since, refusing to die during the
August holidays.
Berlusconi and allies, who at times have trained their
fire more against the use of wiretaps than alleged
improprieties at the Bank of Italy, plan to tighten limits
on the use of wiretaps at separate meeting next week.
Professor Meloria Meschi, associate professor of
economics at Rome's John Cabot University said on Thursday
(Septemner 1) "In terms of international consequences (of
the scandal) there is one problem with credibility. The
credibility of the Bank of Italy was very high, they had a
very high reputation which is now being ruined ....... by
this scandal, by what is happening now."
"I think Fazio should have resigned at the very
beginning of this, at the moment when this thing started
leaking out he should have resigned," Meschi said. "In no
other country you would have a governor of a central bank
standing in position after what has happened here."
Fazio, who has denied the charges of bias and refused
widespread calls to resign, attended an European Central
Bank (ECB) Council meeting on Thursday but sped away
afterwards without making any comment.
The ECB on Thursday (September 1) said it had yet to
decide whether Fazio acted improperly.
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