Nomura, Deutshe Bank Sued Over Derivatives Losses

Gavel

Banca Monte dei Paschi di Siena SpA, which yesterday received a $5.3bn government bailout, sued Deutsche Bank and Nomura over two derivatives that soured.

Bloomberg reports that Monti Paschi filed separate suits in Florence seeking damages over two contracts from 2008 and 2009 dubbed Santorini and Alexandria, the Siena, Italy-based lender said in a statement Friday.

The bank also sued former executives Antonio Vigni and Giuseppe Mussari for colluding with the banks in the transactions. The lender didn’t specify how much it’s seeking.

Monte Paschi, the world’s oldest bank, is being probed by regulators and prosecutors over allegations the lender used the derivatives to hide losses, adding to the cost of its rescue. In case of the Santorini trade, never fully disclosed to investors, the bank made a money-losing bet on the country’s government bonds, Bloomberg News reported on January 17th.

Hit the link below to access the complete Bloomberg article:

Monte Paschi Sues Nomura, Deutsche Bank Over Derivative Bets

Deutsche Bank Cut to Sell at Goldman on U.S. Capital

Citigroup Boosts Estimate to $5 Billion for Possible Legal Costs

 

image: © bloomsberries

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts