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Italian Police Grab $150 Million Assets From Nomura For Defrauding Government
While Goldman's "derivative-based financial advice" to Greece before the EU enabling them to join the party seemingly went unpunished, Nomura has not been so lucky. Having created complex derivatives transactions to 'help' Sicily's regional government, which have now produced major losses for the duped managers, The FT reports Nomura has had property and cash worth $150 million seized related to allegations that the investment bank defrauded the regional government of Sicily with the sale of derivatives in 2002.
The seizure was undertaken following an investigation by Italian prosecutors that showed that the bank allegedly had duped managers of the regional council causing a loss to the region of about €175m, the tax police said in a statement.
...
According to the police, Nomura created three complex derivatives transactions and interest rate swaps related to debts owed by a holding related to Sicily’s healthcare authority.
In a countrywide swoop involving police from Sicily to Milan, 54 properties, share holdings in 13 companies and cash were seized, they added.
...
The swoop is the latest on international investment banks in Italy. Several regional governments and local councils have sought to take investment banks to trial over the sale of derivatives made mostly in the early 2000s. The investigations were almost exclusively focused on interest rate swaps.
Between 2001 and 2008, 525 Italian local authorities entered into almost 1,000 interest swaps with an aggregate value of €35bn, according to Italy’s audit office and central bank. This was equal to almost one-third of all the debt owed by Italy’s regions, provinces and municipalities.
Of course we doubt this was a one-way street, and the FT adds,
The tax police said they were also investigating the extent of the involvement of local politicians in the agreements with Nomura.
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As usual, all the time the financial engineering is helping (in this case to restructure debt to make Sicily appear more attractive), then all is well; but once losses appear, it's fraud... Crucially, Nomura needs some more alumni in officialdom...
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Chump change.
Maybe, but the rest of the world seems to be learning lessons from the US about seizing money from others.
This will spread.
Yakuza outsmarted Mafia.
Too Little, too late.
Time to give those Nomura punks some Roman concrete shoes. Too bad the GS boys didnt get theirs, maybe cause Mario is running a protection racket for them, after all he is their Boy
Stiffed the Sicilians? Some banker's going to wake up with a horse's head beside him.
Goldman rules the world, our Treasury and the sheeple.
One Ring to rule them all, One Ring to find them, One Ring to bring them all and in the darkness bind them
What's Italian for "tails you lose, heads we win"?
Forget Nomura, the real bastards to deal with are klepto-governments; here Italy, and why, isn't that Argentina coming back to the plate for another round of defraud-the-investor?
Ah -- We've found the next form of Bail In.
One way or another, when you defraud Sicily yer gonna meeta Guido.
Let the mafia collect the money from the banks. Win-win.
Hell hath no fury like a bankster scorned.
What do you call the ' thingy ' that turns in and eats on itself?
A Klein Bottle? http://en.wikipedia.org/wiki/Klein_bottle
I hope anyone/everyone learns from their example. Asset seizure sounds fair and proper.
Is this parallel to ObamaCare but, increasingly more leveraged? There's the fallacy, free European healthcare hoax.
How many horses' heads,
do you need
in your bed?
Defrauding government?????
How, exactly, is it possible to cheat a thief?
Looks like the Italians have some balls , maybe a few other EU members will grow some balls and start to reclaim some of the Proceeds of Crime from these criminal banking cartels , before they go bankrupt that is.
The sharks are starting to feed on themselves.
We're in the final countdown now baby. All these years of ZH doom and gloom will be proven right. Well done Tyler's, I think.
Wouldn't punishing Goldman be anti-Semetic?
When do we get to grab back billions from the government for defrauding us?
Trading Losses = Fraud.
Yea, that's the ticket.
Just sayinnnnnn..........
Italian opera title? Dibs on the seized assets. The people won't see a lira.