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

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 (DE:) and 88 million euros from Nomura (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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.