BOI did not try to stop ex-Monte Paschi chief leading bank lobby-new head

ROME Thu Jan 31, 2013 12:51pm EST

ROME (Reuters) - The Bank of Italy made no effort to stop the re-appointment of former Monte dei Paschi chairman Giuseppe Mussari as head of the Italian Banking Association last year despite turmoil surrounding the troubled lender, the new head of the association said on Thursday.

The comment to Reuters by Antonio Patuelli, confirmed as new head of ABI on Thursday, underlines the growing question over why the Italian central bank did not take tougher action against the former management of Monte Paschi despite being aware of serious problems at the bank.

Mussari, who left Monte Paschi in April last year after it emerged that the bank had booked big losses on derivatives contracts, resigned as ABI president last week when further derivatives losses emerged.

(Reporting By Giselda Vagnoni and Alberto Sisto)


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.