Marco Saba's historic speech at UniCredit in 2014

Marco Saba's historic speech at UniCredit shareholders meeting in 2014
https://www.unicreditgroup.eu/content/dam/unicreditgroup-eu/documents/en/governance/shareholders-meetings/archive/2014/shareholders-meeting-13-maggio-2014/Minutes-May-13-2014.pdf

Mr Marco SABA took the floor and made the following speech:

“I address all of the Directors and, by extended greeting, all shareholders.
My name is Marco Saba, and I am speaking as the delegate of shareholder Christian Savatteri. I ask for a copy of my speech to be transcribed with the minutes.
I wish to begin by stating that my topic of intervention is item 1 on the Agenda, UniCredit’s 2013 consolidated financial statements,  specifically  its  legality,  legal  and  economic underpinnings,  with  recourse  to  “exceptio  veritatis”,  in compliance with IAS standard 8 and Bank of Italy Circular no.262 dated 22 December 2005, amended for the second time on 21 January 2014, which states the following: “If, in exceptional situations,  application  of  a  provision  envisaged  under international accounting principles is inconsistent with the true  and  correct  balance  sheet,  financial  situation  and earnings results, it should not be applied.”
The  drafting  of  UniCredit’s  financial  statements  must  take into  account  the  fact  that  in  addition  to  marginal  gross income, banks create new money every time they lend or invest, a fact confirmed recently by Bank of France General Council member Bernard Maris, as well as in Bank of England Bulletin no. 1, 2014. This creation of liquidity is not highlighted as it should be among income statement activities; it may only be deduced secondarily under item 70 as loans to clients on the consolidated balance sheet (on page 82), where it is stated at Euro  503.1  billion,  a  figure  miles  away  from  the  Euro  3.4 billion indicated in the consolidated cash flow statement on page 88 as “liquidity generated over the period”. I restrict myself to this 503.1 billion, as I consider right now that the cloning of money that took place in 2013 through cash payments and  during  foreign  currency  transactions  is  of  secondary importance.  The  current  balance  sheet  is  therefore  clearly spoiled  by  significant  errors,  indeed,  material  errors  of omission,  which  must  be  corrected  pursuant  to  the  above-mentioned provisions. As it stands, the operating results for the financial year are not a true and correct representation, as they forgo an item for the creation of money supply, or rather,  liquidity  generated  just  prior  to  being  used  for commitments   during   FY   2013.   If   we   adjust   UniCredit’s consolidated financial statements, considering therefore just item 70 on the consolidated income statement (on page 82) – “Loans to customers” - and shifting it over to item 280 on the consolidated income statement (on page 84) - that is, “Profit (Loss)  before  tax  from  continuing  operations”  -  we  come up with a gross profit  of Euro 487.9 billion, rather than the gross loss of Euro 50.2 billion that was posted. There is a difference of at least Euro 503 billion less to recoup. Net of taxation at 27.5% we would therefore have - under item 340 of the consolidated income statement – net operating profit of at least 353 billion,  rather than the net  loss of billions  of euros we see today. It follows that, for distribution of the dividend, we should be referring to the adjusted net profit which,  at  the  same  rate,  works  out  at  around  Euro  61  per share. By restoring the bank’s accounts to in bonis status, by way of example the three largest shareholders Blackrock, Aabar and PGFF would be in line to bank around Euro 17 billion each.
On  the  other  hand,  the  consolidated  financial  statements presented today artfully overturn the real earnings result and hoodwink all shareholders. It should further be noted that the tax authorities are  down Euro 150 billion on the deal,  and that   the   CGIL   Union   did   well   recently   to   seek   the reintroduction of the crime of false accounting and laundering one’s own money.
I  am  therefore  against  approving  the  current  financial statements, and ask the pro-tempore
CEO for a written response to this speech within the next 15 calendar days.
Those  interested  should  not  hesitate  to  contact  me  if  they wish  to  have  further  explanations  of  the  research  I  have undertaken as Head of Research at the Centro Studi Monetari, and on the sources that can be used to recoup the shortfall.
I reserve the right to act in any forum and at any level to protect the interests of my delegating party, notwithstanding the associated benefits pursuant to Section 930 of the Italian Civil Code, and I conclude by thanking everybody in attendance for listening to me. "

"Replying to Mr Saba , who believed that UniCredit’s economic performance for the period had not been accurately or fairly represented,  since  there  was  no  reference  to  the  monetary aggregate generated in FY 2013, and stated that he would be voting against the approval of the accounts, asking the Chief Executive Officer for a written reply within the next fifteen calendar  days,  Mr  Ghizzoni  pointed  out  that  both  the consolidated  accounts  and  the  individual  balance  sheet reported by UniCredit S.p.A. had been drafted in accordance with  international  accounting  standards  (IAS  and  IFRS),  and with the provisions laid down by the Bank of Italy, and had been certified by the audit firm Deloitte & Touche."