Cesare Geronzi, the bank's chairman, says staff cutbacks will turn the situation around.

ECONOMIST: Italian banking

Its chairman, Cesare Geronzi, and chief executive, Matteo Arpe, had been locked in a public spat earlier this year over the bank's strategy.

FORBES: Capitalia Next On The Block?

And Cesare Geronzi, the bank's chairman, was accused by Calisto Tanzi, the former boss of Parmalat and now an inmate of San Vittorio prison in Milan, of forcing Mr Tanzi to buy several companies at over-inflated prices.

ECONOMIST: Parmalat