⁍ UniCredit named economist Pier Carlo Padoan as director and said it would appoint the former Treasury chief as chairman when it renews the board next spring.

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⁍ The choice of Padoan, 70, a parliamentarian for the ruling centre-left PD party, comes as consolidation sweeps through Europe’s battered banking sector.

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⁍ As economy minister in two successive PD governments, Padoan oversaw the bailout of Italy’s oldest bank, Monte dei Paschi.

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– An Italian politician who oversaw the bailout of Monte dei Paschi bank has been named chairman of UniCredit, the country’s biggest bank, the BBC reports. Pier Carlo Padoan, a member of Italy’s parliament who was economy minister in two successive center-left governments, oversaw the bailout of Monte dei Paschi, which the government is now seeking to re-privatize. UniCredit is seen as the best candidate to take over Monte dei Paschi but the Treasury is unwilling to meet conditions posed by UniCredit to consider a potential acquisition. “UniCredit is a true pan-European winner with solid Italian roots,” Padoan said in a statement. Padoan’s resume includes stints at the International Monetary Fund and the Organization for Economic Co-operation and Development. He will replace academic Cesare Bisoni, who UniCredit had named interim chairman following the sudden death of Fabrizio Saccomanni last year. The chairman is an honorary figure with no executive powers but two people familiar with the matter said Padoan may carry more weight than his predecessors. The bank’s share price stands below levels of mid-2016 when Mustier arrived, at around 0.3 times the book value. The dividend ban driven by COVID-19 has stalled Mustier’s plan to boost investor returns through dividends and buybacks. “In case regulators’ approach to capital return remains conservative and considering that the competitive landscape has changed in Italy, we believe UniCredit might consider M&A if it represents revenue/profitability or capital opportunities,” Citi analyst Azzurra Guelfi said in a note.