Make Kitco Your Homepage

Italian court convicts Deutsche Bank, Nomura in Monte Paschi derivative trial

Kitco News

MILAN (Reuters) - An Italian court on Friday convicted 13 former bankers from Deutsche Bank, Nomura and Monte dei Paschi di Siena over derivative transactions that prosecutors say helped the Tuscan lender conceal massive losses.

The verdict, read in court by lead judge Lorella Trovato, also ordered the seizure of 64 million euros from Deutsche Bank (DBKGn.DE) and 88 million euros from Nomura (8604.T) as part of the sentence. Monte dei Paschi itself settled in 2016.

The case centres on two controversial derivatives deals - known as Alexandria and Santorini - that Nomura and Deutsche Bank arranged for Monte dei Paschi in 2009.

Prosecutors alleged the deals helped Monte dei Paschi, the world’s oldest bank and Italy’s fourth biggest lender, hide more than 2 billion euros ($2.2 billion) of losses racked up after it the costly acquisition of a smaller rival in 2008.

The scandal, together with more losses suffered by the bank during the euro zone’s debt crisis, threatened to destabilize Italy’s financial industry and forced Monte dei Paschi to seek an 8 billion euro state bailout in 2017.

All defendants have always denied any wrongdoing.

Reporting by Emilio Parodi

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.