Bank Of Italy's Fazio Is Feeling The Heat

Pressure is rising for embattled Bank of Italy Governor Antonio Fazio to step down. Rome prosecutors are expected to file formal charges against Fazio soon for abuse of office as part of a wide-ranging investigation of a bank takeover battle involving ABN-Amro (ABN ) and Italy's Banca Antonveneta. Finance Minister Domenico Siniscalco and other officials have called for Fazio's resignation to restore the Bank of Italy's credibility. Fazio, who has a lifetime mandate, has been criticized after transcripts of phone taps were publicized that showed he may have favored an Italian bank in the recent battle for Antonveneta. Fazio claims he did no wrong but may not weather the storm. Parliament is reviewing a draft law that would limit the term for bank governor to seven years.

Edited by Rose Brady

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