Prosecutors of two Italian cities probing past irregularities at Banca Monte dei Paschi di Siena SpA and the bank’s supervision by regulators will probably meet this week to discuss how to coordinate their investigation, a person familiar with the probes said.
Prosecutors in Siena, where Monte Paschi is based, and in the southern city of Trani have a mutual interest in avoiding overlaps, said the person who asked not to be named because details of the investigations are not public.
Siena prosecutors are probing the past management for alleged market manipulation, false accounting, obstruction to regulatory activity related to the acquisition of Banca Antonveneta SpA and fraud related to derivatives trades, the person also said. Prosecutors in Siena also are investigating the bank under a law on company responsibility for crimes committed by its executives, the person said, adding that the prosecutors have been cooperating for months with regulators, including the Bank of Italy.
Prosecutors in Trani opened an investigation into the supervision of Monte Paschi by the central bank and market watchdog Consob, consumer group Adusbef said in an e-mailed statement today. The investigation follows a complaint submitted by the lobby earlier this year.
The Rome-based Bank of Italy said Jan. 23 that Monte Paschi’s derivatives transactions are being reviewed by its oversight division as well as judicial authorities.