Ventoruzzo appointed to Italian bank board with the vetting of the European Central Bank

UNIVERSITY PARK, Pa. -- European banking systems are at the center of the economic, political, and legal discussions in Europe. As in many parts of the world, the financial crisis has taken a toll especially on the assets of the banks, and one of the major problems has to do with so-called "non-performing loans."

In this complex framework, Penn State Law professor Marco Ventoruzzo has been appointed to the board of directors of Veneto Banca, an Italian bank undergoing a turnaround. An investment fund specialized in investing in troubled banks and loan portfolios has acquired almost all the shares of Veneto Banca, recapitalizing the financial institution.

According to Ventoruzzo, the case is interesting because the transaction has been conducted under the auspices of financial regulators: the European Central Bank, the Italian Minister of the Treasury, and the Securities and Exchange Commission. In fact, this is the first time that the board of directors of a bank has been elected in compliance with the new and rigorous "fit and proper" rules of the European Central Bank concerning the professional and honorability requirements of board members. The entirely new board will have three years to relaunch the financial institution, which has over 6,000 employees. 

"This is a big responsibility that will require a significant investment of time and energy," Ventoruzzo said. "I have decided to accept, however, because it is a unique opportunity to try to use my scholarly work on corporate and financial law in a practical way, in the interest of many different stakeholders: employees, creditors, investors, and clients. 

"As a law professor, especially in an area such as business law, it can be useful for both your research and teaching activities to occasionally engage the 'real world' and exit the 'ivory tower' that shields many scholars. In this perspective, while I will have to sacrifice some nights and travel more frequently, I hope the experience will ultimately benefit my academic work and allow me to offer more to my students."