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First Monte Paschi Banker Arrested With $54mm Stash

Tyler Durden's picture





 

Unfortunately for the apparently not quite big enough to not fail Italian bank's former leaders, the Monte Paschi derivative debacle just won't go away. As Reuters reports today, the first (or many) arrests have been made. Gianluca Baldassarri and four other people suspected of criminal conspiracy to commit fraud were arrested after police seized EUR40mm of apparently ill-gotten gains. The alleged fraud and bribery case charges Baldassarri (who left shortly after the arrival of the new CEO in Jan 2012) of misleading regulators over the true nature of a secret derivative contract that was found in a safe by the bank's new management in October 2012. Echoing JPM's London Whale, they uncovered a 'systematic overshooting of risk limits' in the management of the group's EUR24bn prop book. Baldassarri was arrested quickly after the police found evidence that he was trying to cash in securities worth over EUR1mm soon after the funds were seized.

 

Via Reuters,

Italian police arrested on Thursday the former head of Monte dei Paschi's finance department, who is at the center of a probe into alleged fraud and bribery at Italy's third largest bank, prosecutors said.

 

Gianluca Baldassarri is the first person to be arrested in a widening scandal that has rocked the world's oldest bank and triggered a financial and political storm ahead of Feb 24-25 national elections.

 

Prosecutors in the Tuscan city of Siena, where the 540-year-old bank is based, said Baldassarri was accused of helping mislead regulators over the true nature of a secret derivative contract that was found in a safe by the bank's new management in October 2012.

 

...

 

Baldassari left Monte dei Paschi shortly after the arrival of new chief executive Fabrizio Viola in January 2012.

 

...

 

HIDDEN IN A SAFE

Italian prosecutors seized some 40 million euros ($54 million) last week as part of their investigation. The prosecution seizure order, seen by Reuters, said the funds belonged to Baldassarri and four other people suspected of criminal conspiracy to commit fraud.

 

...

 

Internal documents obtained by Reuters show an audit of the department in August and September 2009 had uncovered a "systematic overshooting of risk limits" in the management of the group's 24-billion euro proprietary portfolio.

 

Last week, the lender put losses stemming from three derivatives trades at 730 million euros and said it may have to restate previous accounts.

 

One of the structured finance transactions under scrutiny is a complex 2009 trade between Monte dei Paschi and Japanese bank Nomura, known as "Alexandria".

The bank's new management says Monte dei Paschi's board never reviewed the trade for approval, and its true nature only came to light in October last year after a secret contract was found in a safe.

 

...

 

FLIGHT RISK

 

In their statement on Thursday, the Siena prosecutors said they had feared Baldassarri may be seeking to leave the country because they had evidence he was trying to cash in securities worth more than 1 million euros after the February 7 fund seizure.

 

...

 

The Bank of Italy has faced increasing questions over its supervision, and Mario Draghi, who was governor of the Italian central bank before becoming president of the European Central Bank in November 2011, has also been drawn into the criticism.

 


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Thu, 02/14/2013 - 10:27 | Link to Comment Pladizow
Pladizow's picture

ONE BULLET!

Thu, 02/14/2013 - 10:29 | Link to Comment francis_sawyer
francis_sawyer's picture

Meanwhile... [1 hour ago]

~~~

"Riverside, California (CNN) -- Authorities said Wednesday they are reasonably sure that the body found inside the burned cabin near Big Bear Lake, California, is that of Christopher Dorner, the rogue ex-cop who had been pursuing a vendetta against his fellow officers.

"We believe that this investigation is over, at this point, and we'll just need to move on from here," San Bernardino Sheriff John McMahon told reporters.

~~~

I'm guessing the body will be eased into the Indian Ocean for burial

Thu, 02/14/2013 - 10:32 | Link to Comment Sudden Debt
Sudden Debt's picture

interesting...

Thu, 02/14/2013 - 10:34 | Link to Comment Badabing
Badabing's picture

First Monte Paschi Banker Arrested With $54mm Stash.

thats good for a $1mm fine

Thu, 02/14/2013 - 10:39 | Link to Comment BurningFuld
BurningFuld's picture

His $54m would be kickbacks for signing those swaps. No doubt no doubt.  He almost escaped with the cash before they blew up too! Damn I hate it when that happens. Although he does have plenty of money to pay off the Police and prosecutor.

Thu, 02/14/2013 - 11:12 | Link to Comment Fuh Querada
Fuh Querada's picture

pocket change

Thu, 02/14/2013 - 10:30 | Link to Comment francis_sawyer
francis_sawyer's picture

Meanwhile... [1 hour ago]

~~~

"Riverside, California (CNN) -- Authorities said Wednesday they are reasonably sure that the body found inside the burned cabin near Big Bear Lake, California, is that of Christopher Dorner, the rogue ex-cop who had been pursuing a vendetta against his fellow officers.

"We believe that this investigation is over, at this point, and we'll just need to move on from here," San Bernardino Sheriff John McMahon told reporters.

~~~

I'm guessing the body will be eased into the Indian Ocean for burial

Thu, 02/14/2013 - 10:31 | Link to Comment Sudden Debt
Sudden Debt's picture

you said that already...

Thu, 02/14/2013 - 10:36 | Link to Comment LawsofPhysics
LawsofPhysics's picture

There will be numerous mandchurian candidates coming up.  Must convince the sheep that the need the government's "protection", give that TSA officier you guns, etc.

 

I remain long black markets, physical assets of real value and a dependable tribe...

Thu, 02/14/2013 - 10:46 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

i don't know about you, but I really don't feel the need to rent my home through property taxes to pay a gang that can now lawfully burn down my home if I am deamed a "bad guy". 

Due process, it's what's for history!

Thu, 02/14/2013 - 10:31 | Link to Comment francis_sawyer
francis_sawyer's picture

.

Thu, 02/14/2013 - 10:32 | Link to Comment Sudden Debt
Sudden Debt's picture

really... you did...

Thu, 02/14/2013 - 10:55 | Link to Comment francis_sawyer
francis_sawyer's picture

Fuck you... Blow me... The computer locked up when I hit send... I'll lay odds that it's the fucking pussy ass bitcoin miners searching for their little prizes in the cracker jack boxes...

~~~

Reason 1002 why 'bitcoin' is a dead end... Because if the end game is everyone on the planet having mining hardware on their computer performing 'processes' on each others computers all at the same time, the goddamned internet is going to come to a screeching halt...

Thu, 02/14/2013 - 11:18 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Re f*cking pu$$y a$$ bitcoin miners searching for their little prizes in the cracker jack boxes...

 

Hahaha!!! Best description Ive heard yet!

Thu, 02/14/2013 - 15:52 | Link to Comment TraderTimm
TraderTimm's picture

Hahaha.

Love how you post your usual grey-haired confusion in a thread about someone caught smuggling funds across the border. Just showing your absolute ignorance of anything that has binary logic.

francis_sawyer, maybe keep that old AOL dialup account and your MajicJack for long-distance calls. Leave the internet to people who understand it. Oh, and computers too.

Next you'll be blaming bitcoin for your prostate enlargement.

Thu, 02/14/2013 - 10:31 | Link to Comment francis_sawyer
francis_sawyer's picture

.

Thu, 02/14/2013 - 10:28 | Link to Comment redpill
redpill's picture

Only a banker would be stupid enough to think a safe is safe.

Thu, 02/14/2013 - 10:30 | Link to Comment Sudden Debt
Sudden Debt's picture

it sure is... just look at fort knox... somebody loses the key and nobody can't get their gold out anymore....

 

Thu, 02/14/2013 - 10:54 | Link to Comment LongSoupLine
LongSoupLine's picture

Don't waste any fucking time. Execute him now...painfully. fucking pricks, after that just fucking execute any fucking banker retroactive whom were involved in any fucking middle class financial raping activities. Stack their dead cold fucking bodies on top of asshole Bernanke and make him eat his fucking way out. Fuckers.

Thu, 02/14/2013 - 11:14 | Link to Comment Fuh Querada
Fuh Querada's picture

Elegantly put.

Thu, 02/14/2013 - 11:44 | Link to Comment Hubbs
Hubbs's picture

I am so tired of all this politically correct lip service about "innocent until proven guilty in a court of law" and the  "right to a fair trial."

 

This presupposes that there is a fair and impartial justice system. There is clearly not. So why bother with trials? Seems like these people should be fair game to be shot on sight for crimes against humanity. After all, Obama has already set the precedent with OBL and others on the drone turkey shoot list.

Thu, 02/14/2013 - 10:25 | Link to Comment docmac324
docmac324's picture

Can we arrest some here already?

 

Thu, 02/14/2013 - 10:26 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I know where one is.....but he's got DOJ protection.

Thu, 02/14/2013 - 10:36 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

The DOJ is the rat.

Thu, 02/14/2013 - 10:27 | Link to Comment Sudden Debt
Sudden Debt's picture

Sorry... jail is already filled with people who got a parking ticket...

BUT HE'LL GET A SLAP ON THE WRIST THAT YOU WON'T BELIEVE!!

Thu, 02/14/2013 - 10:26 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Scapegoats!

Thu, 02/14/2013 - 10:37 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

You know you are reaching the end of the game when the banksters are starting to turn on each other. 

Thu, 02/14/2013 - 10:41 | Link to Comment NoDebt
NoDebt's picture

Yep.  This is indication that the effort to sacrifice pawns to save the king is well underway.  How many more pawns will it take to satisfy you to stop going after the kings?  Perhaps a rook, a knight, maybe even a bishop, but no higher than that.

You can also expect to hear the kings employing the newly-in-voge "it's too big to manage every little part of it so you can't hold me personally responsible" defense very shortly.  Jamie Dimon played it like a master, you can expect the same here. 

Thu, 02/14/2013 - 18:09 | Link to Comment Swarmee
Swarmee's picture

Bishop? How about a Pope?!

Back on topic: these Italian bankers are being charged with criminal conspiracy to commit fraud..... Sounds like that's a crime that would stick to plenty of a-hole US bankers involved in tanking the economy and bringing about the financial crisis. Many times the excuse for no charges h been that what was done was unethical but not criminal, well, if they involved even one other person that's conspiracy so lets get crackin DOJ!

Or y'know, ANY arrest of ANYONE AT ALL involved in destroying massive amounts of wealth and affecting literally every US citizen.

Oh and as long as I'm wishing for ponies, how about one count of fraud per citizen for LIBOR fixing participants? Consecutive sentence should be pleasant to add up for that.

Thu, 02/14/2013 - 15:33 | Link to Comment Bunga Bunga
Bunga Bunga's picture

What do you thought? Of course at least somebody has to be arrested, since Goldmans can't be arrested.

Thu, 02/14/2013 - 10:28 | Link to Comment madcows
madcows's picture

They must have forgotten to buy off the regulators (government) and and enforcers(SEC equivalent).  That's what our criminal wall streeters did, and look at them.  They've got a license to swindle at will... just so long as the politicians get a cut (see John Kerry and Heinz, Pelosi and her hubby's amazing "investments", etc..).

Thu, 02/14/2013 - 10:33 | Link to Comment Water Is Wet
Water Is Wet's picture

Italy's prosecutors are no joke, apparently.  Italy's former intelligence chief was just sentenced to 10 years in prison for his role in a CIA kidnapping in the War on Terra.

http://www.guardian.co.uk/commentisfree/2013/feb/13/italy-cia-rendition-...

Imagine if Leon Panetta or Don Rumsfeld or Colin Powell or David Petraeus were sent to prison... HA!  Italy actually has a justice system, apparently.

Thu, 02/14/2013 - 10:27 | Link to Comment Gert_B_Frobe
Gert_B_Frobe's picture

I'm sure those seized funds will work there way back into the system ... via various purchases by the Italian prosecutors for their female "cousins"

Thu, 02/14/2013 - 10:29 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

In the US, they would go towards shiny new tanks/APCs for the local PD.

Thu, 02/14/2013 - 10:43 | Link to Comment NoDebt
NoDebt's picture

What makes you think they haven't?

OK, maybe not tanks yet, but pretty much everything else, including drones!

Thu, 02/14/2013 - 10:29 | Link to Comment Cdad
Cdad's picture

I hear that financials will continue to lead equity market rallies because they are historically cheap.  Got that tip from The BlowHorn [CNBC], and I can hardly wait for the opening bell so that I can rush into JPM and DB.  

I also heard from J. Dimon that the 2008 financial crisis is over, and it is time for everybody to move on already.  Never have more prescient words been uttered.

This thing with Paschi is obviously some kind of one-off.  

The criminal syndicate known as Wall Street would never misrepresent the value of...its share.

Thu, 02/14/2013 - 10:31 | Link to Comment Number 156
Number 156's picture

The other flight risk is Mario Draghi.

Thu, 02/14/2013 - 11:02 | Link to Comment Dapper Dan
Dapper Dan's picture

Never trust a man whose last name ends in a vowel.

Thu, 02/14/2013 - 11:29 | Link to Comment Seasmoke
Seasmoke's picture

Obama

Thu, 02/14/2013 - 12:15 | Link to Comment thisandthat
thisandthat's picture

Romney

Thu, 02/14/2013 - 10:31 | Link to Comment y3maxx
y3maxx's picture

...The Italian "SEC" is arresting TBTF Italian Bankers!

and TBTF Popes are jumping ship too.

...It's time for a Jewish Pope to step in and clean up the Vatican...

https://www.youtube.com/watch?v=gnULTWUr8RE

Thu, 02/14/2013 - 10:31 | Link to Comment A Man without Q...
A Man without Qualities's picture

"IMF urges speed on banking union with a credible common backstop."

i.e. in order to prevent the contagion risk from widespread fraud in EU banks, it is important that taxpayers take the hit...

 

http://www.ft.com/cms/s/0/2d7d0b56-75e0-11e2-b702-00144feabdc0.html#axzz...

Thu, 02/14/2013 - 10:33 | Link to Comment falak pema
falak pema's picture

just imagine the number of safes that are deposited in the back offices of bankers all over the world. If there are 4000 bankers and each has 50M $ that adds up to :

200 billion in small change. Now that is just peanuts; the big stuff is already in tax havens; hundred to two hundred times more, in cash or FIRE assets. 

Thu, 02/14/2013 - 11:15 | Link to Comment Fuh Querada
Fuh Querada's picture

Tax-exempt trusts in Belize and the Cayman Islands.

Thu, 02/14/2013 - 10:38 | Link to Comment ebworthen
ebworthen's picture

An actual arrest by the Police of an actual banker, when will that happen in the U.S.S.A.?

Thu, 02/14/2013 - 10:43 | Link to Comment Terminus C
Terminus C's picture

When American Citizen citizenism blobs up to the task of citizenizing the government.

Thu, 02/14/2013 - 10:41 | Link to Comment NEOSERF
NEOSERF's picture

That's some juicy ripe a tomatoes.  Fuck Italy, call me back when I can buy a tuscan apartment with water views for $30K...

Thu, 02/14/2013 - 10:43 | Link to Comment shovelhead
shovelhead's picture

New Euro realiity series...

"Mafiosi-Hunters".

Thu, 02/14/2013 - 10:43 | Link to Comment Scalaris
Scalaris's picture

Has anyone figured the connection of Monte dei Paschi, Dresdner Bank AG, Lutifin Lugano, Skylark Limited Cayman and Alexandria Capital PLC?

Thu, 02/14/2013 - 10:50 | Link to Comment youngman
youngman's picture

They all have an A in the name

Thu, 02/14/2013 - 11:32 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Don't forget the helicoptor company.

Thu, 02/14/2013 - 10:55 | Link to Comment ziggy59
ziggy59's picture

All of them were recently mentioned on ZH

Thu, 02/14/2013 - 11:16 | Link to Comment Fuh Querada
Fuh Querada's picture

You left out Benedict.

Thu, 02/14/2013 - 11:56 | Link to Comment Canucklehead
Canucklehead's picture

These firms all have an indirect relationship with Kevin Bacon.

Thu, 02/14/2013 - 10:50 | Link to Comment youngman
youngman's picture

There are going to be a lot of very rich border crossing agents in the near future.....lots of tips will be made...cash ..gold..or marketable securities are all good and accepted

Thu, 02/14/2013 - 10:54 | Link to Comment ziggy59
ziggy59's picture

One banana, two banana... Soon Bacha-guloop will be snagged

Thu, 02/14/2013 - 11:03 | Link to Comment spanish inquisition
spanish inquisition's picture

Berlusconi looking like the cleanest dirty shirt? (wait, should be dirty)

Thu, 02/14/2013 - 11:38 | Link to Comment Hubbs
Hubbs's picture

Sounds to me that this banker didn't steal ANYTHING fom his fellow citizens, but rather a bunch of 0s and 1s from our generous, forgiving FED via QE transfers.

Since none of our domestic US  bankers are being prosecuted for equal or worse crimes, and since it is our money, then I claim this is capricious and arbitrary prosecution. <sarc>

Thu, 02/14/2013 - 12:19 | Link to Comment ShankyS
ShankyS's picture

This story was very quickly removed from Reuters front page after being posted this AM - wonder why? 

Thu, 02/14/2013 - 12:56 | Link to Comment Obama4Ever
Obama4Ever's picture

I'm still not getting this "mm" stuff. So his stash was 54 milimeters. Or 5.4 centimeters? Or about 2 and 1/8th inches. Not much of a stash.

Thu, 02/14/2013 - 15:57 | Link to Comment Obama4Ever
Obama4Ever's picture

Even if you try to interpret "mm" as million million, that's the same as a thousand billion, or a trillion. So this guy had a stash of 54 trillion dollars.

ASSHOLE STOP USING MM

Thu, 02/14/2013 - 14:10 | Link to Comment Joebloinvestor
Joebloinvestor's picture

A banker arrested.

How come this isn't leading the financial news?

I think a pig just flew by my window.

Thu, 02/14/2013 - 14:48 | Link to Comment larz
larz's picture

These idiots are pikers Madoff ponzi-ed off with billions 

Thu, 02/14/2013 - 15:57 | Link to Comment trendybull459
trendybull459's picture

Wow,what if catch each banker and provide each citizen with just 1/4mln $ from his holding(I mean revolution as solution,before we take all Elite off,may be its good the Elities cash out volantirely,this will solve problem with appartments,I believe its what they took on very average from the people in each country and because they have even more money i ask to devide being people,I would ask where the money prosecutors take from those bankers going?

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