SIENA, Italy, Jan 30 (Reuters) – Prosecutors are
investigating the former management of Italy’s troubled Monte
dei Paschi bank for bribery and fraud, judicial
sources said on Wednesday, as pressure grew on the Bank of Italy
and bourse watchdog Consob.
With parliamentary elections less than a month away, the
scandal at Italy’s third-largest bank has deepened with
questions about the role of banking supervisors and the
influence of local politicians.
SIENA, Italy, Jan 30 (Reuters) – The secret document at the
heart of the Monte dei Paschi banking scandal lay for months in
a concealed safe in a 14th century Tuscan palace.
Chief Executive Fabrizio Viola said he learnt about the
safe’s contents only last October, a full 10 months after he had
been called in to sort out Italy’s third biggest bank.
SIENA, Italy, Jan 30 (Reuters) – Italy’s market regulator
Consob joined the government and the Bank of Italy on Wednesday
in defending its oversight of Monte Paschi as magistrates
investigated allegations of bribery and accounting malpractice
at the historic bank.
Italy’s third-largest lender has been plunged into crisis
over an opaque series of derivatives and structured finance
deals that have produced losses of 720 million euros ($970
million) and raised growing questions about possible corruption
by bank officials.
SIENA, Italy (Reuters) – Monte dei Paschi’s risk control unit and its own internal audit team were alarmed about the department responsible for a series of opaque structured finance deals at the troubled bank as long ago as November 2009, bank documents show.
The documents, obtained by Reuters, add to a growing picture of a badly weakened bank pitching into crisis following its costly 9-billion-euro acquisition of rival Antonveneta just before the global financial meltdown of 2008.
SIENA, Italy (Reuters) – Monte dei Paschi’s (BMPS.MI: Quote, Profile, Research, Stock Buzz) risk control unit and its internal audit committee expressed serious misgivings about the bank’s finance department, now at the center of a scandal over structured finance trades, as far back as 2009, according to internal documents.
Monte dei Paschi has been under fire over three loss-making derivatives deals that its new management say only recently came to light. The deals forced the bank, Italy’s third largest, to request extra state aid last November.
SIENA, Italy, Jan 29 (Reuters) – Monte dei Paschi’s
risk control unit and its internal audit committee
expressed serious misgivings about the bank’s finance
department, now at the centre of a scandal over structured
finance trades, as far back as 2009, according to internal
Monte dei Paschi has been under fire over three loss-making
derivatives deals that its new management say only recently came
to light. The deals forced the bank, Italy’s third largest, to
request extra state aid last November.
MILAN/SIENA, Jan 29 (Reuters) – Alessandro Profumo went to
Monte dei Paschi to stage a financial turnaround; now one of
Italy’s most renowned bankers must also drag the 540-year-old
institution out of a legal and political mire.
Profumo faces the toughest challenge of his long career as
he tries to shake off the legacy of heavy losses on derivatives
trading under previous managers at Italy’s third-largest bank,
as well as suspicions of bribery during a 2007 takeover deal.
MILAN (Reuters) – The loss-making trades at the center of a scandal at Italian bank Monte dei Paschi di Siena’s were only uncovered when new executives unlocked a safe at the bank’s historic headquarters in Tuscany.
A secret document about a derivative trade called Alexandria discovered in the safe in October prompted an internal probe that has, so far, uncovered losses of up to 720 million euros ($969 million) and prompted public fury over the alleged failure of the central bank and politicians to detect the deals.
MILAN, Jan 28 (Reuters) – Italy’s troubled Monte dei Paschi
bank said on Monday it had no evidence of bribery in a
2007 takeover now under scrutiny over alleged corruption, but
acknowledged accounting irregularities under previous management
over derivatives trades.
Fabrizio Viola, appointed as chief executive last year after
a clean-out of Monte dei Paschi’s old management, said the bank
had used complex refinancing deals to hide losses, leaving it
dangerously exposed to interest rates swings.
ROME/MILAN (Reuters) – Italy’s central bank on Saturday gave its approval to a request by scandal hit bank Monte dei Paschi di Siena for 3.9 billion euros ($5.3 billion) of state loans, the latest step in the battle to revive the ailing bank.
The Bank of Italy’s backing was the final stage required to free up the financial help for Italy’s third biggest lender, which this week revealed loss-making derivatives trades that could cost it about 720 million euros.