A judge in Siena, Italy ruled that a case brought by prosecutors against former managers of Banca Monte dei Paschi di Siena SpA for obstructing regulators and market manipulation in the purchase of Banca Antonveneta SpA should be heard in Milan.
The judge at a preliminary hearing today said that the alleged wrongdoing should be assessed by a court in Milan because that’s where the breaches took place, according to two lawyers who attended the Siena proceedings, which weren’t open to the public.
As part of the case, Siena prosecutors had requested that JPMorgan Chase & Co. also stand trial for its role in overseeing employees who allegedly obstructed regulators. JPMorgan withheld information about 1 billion euros ($1.4 billion) in financing the New York-based bank arranged for Monte Paschi’s takeover of Antonveneta in 2008, the prosecutors have said in court filings. A spokeswoman for JPMorgan in Milan declined to comment on today’s ruling.