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Paschi Pressed to Disclose Derivative Losses as Vote Looms

Banca Monte dei Paschi di Siena SpA executives are under pressure from investors to fully disclose losses from derivative contracts as shareholders prepare for a key vote on its government rescue this week.

Monte Paschi shares fell 8.4 percent in Milan today, extending yesterday’s 5.7 percent drop after Il Fatto Quotidiano said former managers signed a derivative with Nomura Holdings Inc. three years ago that will cut earnings by 220 million euros ($293 million) in 2012. The lender pledged a full review of its accounts after Bloomberg News reported on Jan. 17 that Monte Paschi also engaged in a swap with Deutsche Bank AG that obscured losses before the bank’s bailout in 2009.