Monte Paschi sued Nomura in Florence seeking about 700 million euros ($944 million), saying the Japanese lender colluded with its executives to conceal losses in “a series of complex financial transactions,” the Italian bank said in documents at the U.K. hearing today. The lawsuit led Nomura to file the separate complaint in London to have the contracts upheld.
Losses from derivatives prompted Monte Paschi to seek state aid of 4.1 billion euros in February. Prosecutors had sought authorization to seize as much as 1.95 billion euros of Nomura assets, consisting mostly of funds pledged by Monte Paschi to Nomura as security for the derivatives contracts and deposited in Germany.
The U.K. doesn’t have jurisdiction to hear Nomura’s London lawsuit because the Italian case was filed first, Monte Paschi said in court documents.
Rob Davies, a Nomura spokesman, declined to comment. The bank’s agreements with Monte Paschi are governed by English law, it said in documents at the hearing.
To contact the reporter on this story: Kit Chellel in London at email@example.com
To contact the editor responsible for this story: Anthony Aarons at firstname.lastname@example.org