Prosecutors in Milan want 13 former and current managers at Banca Monte Dei Paschi di Siena SpA, Deutsche Bank AG and Nomura International PLC to be tried over accusations of financial crimes including false accounting.
It took more than a year of investigation for the prosecutors to decide regarding the issue. They found out that Nomura and the Deutsche bank helped the Monte Dei Paschi misrepresent their financial situation, according to Bloomberg.
A report from Reuters said the investigation of the prosecutors has led them to finding the facts that Monte Dei Paschi manipulated its stocks. The company's accounting executives reportedly obstructed the supervisory activity of the Italian authorities. They also found out that between 2008 up to 2012, Monte Dei Paschi falsified its earnings and declared it 88% lower than the actual profit.
For quite some time now, the bank has been able to dodge the Italian government regarding concerns of its profitability. It has been constantly looking for other companies' for it to merge with since 2014, according to reports from Wall Street Journal.
But personnels who are familiar with the bank's real status said they have never seen any company that it partnered with ever since as investors have shied away from investing in Monte Dei Paschi stocks. It reportedly had a hard time recovering during the times of European financial crisis.
Ex-chairman Giuseppe Mussari and ex-general manager Antonio Vigni are just some of the personnel's of Monte di Paschi that the prosecutors are after. Former Deutsche bank executive Michelle Faissola who oversees the rates and commodities and heads the assets and wealth management is also included in the indictment request. Charges against Michele Foresti former fixed-income trading executive and Ivor Dunbar, former global market executive were also filed.
Another 3 current and former Deutsche Bank managers were also included in the case. Charges have already been filed in court and it will be up to the judge on how soon a decision will be made regarding the issue.
