- Ex-managers allegedly falsified accounts, manipulated market
- Bank’s plea deal request agreed to with Milan prosecutor
Banca Monte dei Paschi di Siena SpA asked for a plea-bargain agreement in a probe involving its former managers for allegedly falsifying Italy’s third-largest bank’s accounts and manipulating the market.
Monte Paschi’s request was agreed to with prosecutors in the Milan investigation, in which the bank is suspected of being responsible for a range of alleged crimes committed by its former executives, the Siena-based lender said in a statement Saturday. If Paschi’s request is accepted by the judge the bank will need to forfeit 10 million euros ($11 million) and pay a fine of 600,000 euros.
Prosecutors have been investigating how Monte Paschi’s former managers misrepresented the lender’s finances in the years before it sought a government bailout. The Italian lender used derivative transactions to mask losses and was later forced to restate its accounts.
Prosecutors are seeking charges against former executives of the bank along with ex-managers of Deutsche Bank AG and Nomura Holdings Inc. for colluding to misrepresent Paschi’s finances.