Deutsche bank officials jailed over Italian bank's false accounting
Italy took a hard line against bankers involved in helping Banca Monte dei Paschi di Siena falsify its accounts, sentencing 13 executives and managers to jail terms and fining the banks that worked with the Italian lender.
Monte Paschi ex-Chairman Giuseppe Mussari was sentenced to 7.6 years in prison. Deutsche Bank officials Michele Faissola and Michele Foresti and Nomura's Sadeq Sayeed, Raffaele Ricci also received jail terms. Deutsche Bank and Nomura face fines and seizures totalling about €160m ($176 million) for their roles.
Monte Paschi's managers were accused of colluding with Deutsche Bank and Nomura bankers to hide losses at the Italian lender by using complex derivatives trades, dubbed Santorini and Alexandria, that led to a misrepresentation of its finances between 2008 and 2012.
Paschi reached a plea-bargain deal in 2016 in one of the highest profile European banking cases in the last decade. A spokesman for Monte Paschi declined to comment.
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All of the 13 suspects from the three banks received prison terms, including Antonio Vigni, Monte Paschi's former general manager and ex-CFO Daniele Pirondini.
The court convicted two of the managers despite the prosecution calling for their acquittal. Deutsche Bank said it would review the judgement's rationale once it is published.