Three former executives of Banca Monte dei Paschi di Siena SpA face an expedited trial for allegedly obstructing regulators in the first indictments related to the managers’ use of derivatives to mask losses.
Prosecutors probing Banca Monte dei Paschi di Siena SpA’s purchase of Banca Antonveneta SpA have asked Spain for permission to question Banco Santander SA Chairman Emilio Botin as a witness, four officials with knowledge of the matter said.
Banca Monte dei Paschi di Siena SpA won investor approval to sue former managers over derivatives that hid more than 700 million euros ($916 million) of losses and are at the center of a fraud probe by prosecutors.
Prosecutors in Italy are seeking to seize 1.8 billion euros ($2.4 billion) of assets from Nomura Holdings Inc. as part of an investigation into Banca Monte dei Paschi di Siena SpA’s use of derivatives to hide losses.
Italy’s central bank is fining former top executives of Banca Monte dei Paschi di Siena SpA about 5 million euros ($6.4 million) for their alleged lack of controls over the lender’s risk management, said a person with knowledge of the matter.
Banca Monte dei Paschi di Siena SpA alleged Nomura Holdings Inc. and Deutsche Bank AG colluded with former managers to devise two derivatives that hid losses and earned them at least 180 million euros ($231 million).
The Fondazione Monte dei Paschi di Siena has its headquarters in the baroque Palazzo Sansedoni overlooking the Italian city’s main square. It was there, one day in November, that Chairman Gabriello Mancini delivered the bad news: The foundation, which for 15 years had supported the districts that compete in the renowned Palio horse races, could no longer pay for the spectacle’s colorful medieval costumes.
Nomura Holdings Inc. shares fell the most in two weeks after Italian prosecutors said they aim to seize 1.8 billion euros ($2.4 billion) of its assets as part of a probe into Banca Monte dei Paschi di Siena SpA.