Monte Paschi Seeks Plea Bargain in Probe Tied to Former Managersby
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.