Bank Of Italy Throws The Book At Monte Paschi For "Hiding Derivative Documents"
As we reported previously, the stock of the oldest bank in the world, Italy's venerable Banca Monte Dei Paschi of Siena, was halted in early trade after plunging on news that the bank had engaged in not only the previously reported secret derivative transaction with Deustche Bank to hide losses before a prior government bailout, but yet another derivative transaction, this time with Nomura, signed three years ago and whose intention, ironically, was to reduce 2012 earnings by some €220 million.
What the ultimate purpose of these deals was is still unclear and will likely become apparent eventually, however it will likely require the former Chairman of the bank, Giuseppe Mussari, who served as Chair from 2006 until April 2012, and who officially quit his post as Italy's top banking lobbyist after today's revelations, to testify. One person whom he may testify against is none other than current ECB head Mario Draghi, who just happened to be the head of the Bank of Italy from 2006 to 2011, or the entire period when Monte Paschi was engaging in what increasingly appears to have been fraudulent activity.
But don't worry: just like in the US, nobody of signfiicance is about to go down for this "glitch" which is about to be blamed on some poor mid-level shmuck, and which nobody in the senior level management had any idea about, and certainly not the person who ultimately would have had to give the green light: the current head of the ECB. Sure enough from Bloomberg:
- BANK OF ITALY SAYS MONTE PASCHI HID DOCUMENTS ON TRANSACTIONS
It was all Fabrice Tourre's fault. Or better, yet: an algo did it!
- BANK OF ITALY SAYS NEW BMPS MGMT DISCLOSED INFO ON DEALS
- BANK OF ITALY SAYS NEW BMPS MGMT COOPERATING WITH AUTHORITIES
- BANK OF ITALY SAYS ALSO MAGISTRATES REVIEWING TRANSACTIONS
Would it be the same magistrates who are also reviewing Berlusconi for "alleged" sex with minors?
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