Italian prosecutors accuse Deutsche Bank of criminal organization at the trial of Monte dei Paschi
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- May 17th, 2017
Since last year, Deutsche Bank and Nomura are being investigated by disguise and distort the accounts of Banca Monte dei Paschi between 2008 and 2012, in which the Italian company appealed to the market on several occasions to strengthen capital.
A new line of investigation opened by the Milan prosecutor accused the German company of "international criminal organization" by manipulating international indices for complex assets conceal losses Italian bank.
Prosecutors have used internal documents and emails from Deutsche Bank to prove "aggravating circumstances" in the case that accuses the German bank of falsifying the accounts of Banca Monte dei Paschi , according to Bloomberg .
The new evidence includes messages between derivative traders in London with one of those investigated in the trial.
The new documentation on alleged market manipulation that operates from several countries could lead to higher penalties if there is a judgment against the defendants.
In the case called Santorini are being tried six bankers from Deutsche Bank and the entity itself to help falsify the accounts of Monte dei Paschi.
In total thirteen are being prosecuted former executives from the German bank, Japanese and Italian.
Manipulation of accounts
Giuseppe Iannaccone, a lawyer for Deutsche Bank and some of the defendants tried that new evidence should be dismissed arguing that there was no clear relationship between market manipulation and alleged aggravating circumstances.
According to a lawyer specializing in financial crimes, Giampiero Biancolella, if the judge admits the aggravating penalties can amount to a maximum of nine years.
Deutsche Bank and Nomura are accused of using derivative transactions to hide losses in the Italian lender, which led to makeup accounts between 2008 and 2012. Subsequently Monte Paschi had to inspect their accounts and increase capital twice.
Tests
The aggravating international criminal organization depends on the performance of Deutsche Bank in other parts of the world to manipulate the indexes that were linked derivatives.
An investigation by the Federal Authority for Financial Supervision Germany (BaFin, its acronym in German) in 2014 revealed that bank employees had manipulated the internal indexes to help ensure a capital in 2008.
The document being used in the current trial indicates that "l as commercial activities of Deutsche Bank were a determining factor for establishing the price and volume" of the operation.
An operator of the bank itself in London congratulated by email to Michele Foresti , former head of European fixed income Deutsche , for the operation closed.
While researchers can not prove manipulation of indexes with the result of the operation, according tothe audit commissioned by BaFin , communications between employees "provide a connection between the business of Deutsche Bank with the expansion of Monte dei Paschi " argues the prosecution
