Milan prosecutors accused six former and current Deutsche Bank AG executives, including Michele Faissola, Michele Foresti and Ivor Dunbar, of colluding with Banca Monte dei Paschi di Siena SpA to falsify its accounts, manipulate the market and obstruct the activity of authorities.
Prosecutors completed an investigation into two separate derivative contracts arranged with Nomura Holdings Inc and Deutsche Bank, as well as on two financings dubbed FRESH and Chianti Classico, according to a Milan prosecutor office’s statement Thursday. The banks, five former managers of Monte Paschi, an ex-chief executive officer of Nomura International and another manager of Nomura at that time, are also accused.
Prosecutors have been reconstructing how Monte Paschi’s former managers misrepresented the lender’s finances in the years before it sought a government bailout. The misrepresentation first came to light in January 2013 when Bloomberg News reported that Monte Paschi used a transaction with Deutsche Bank, dubbed Santorini, to mask losses from an earlier derivative contract. The bank the same year had to restate its accounts.
The original article can be found at www.bloomberg.com