Monte Paschi wants damages from former executives, banks

MILAN Fri Mar 1, 2013 5:36am EST

The entrance of Monte Dei Paschi bank headquarters is pictured in Siena January 24, 2013. REUTERS/Stefano Rellandini

The entrance of Monte Dei Paschi bank headquarters is pictured in Siena January 24, 2013.

Credit: Reuters/Stefano Rellandini

Related Topics

MILAN (Reuters) - Troubled Italian bank Monte dei Paschi di Siena (BMPS.MI) is seeking damages from two former executives and investment banks Nomura (8604.T) and Deutsche Bank (DBKGn.DE) over derivatives trades losses.

The Tuscan bank, Italy's third-biggest, suffered losses of around 730 million euros ($954 million) from a number of structured finance deals carried out under former Chairman Giuseppe Mussari and former Director General Antonio Vigni.

The two most problematic trades are a restructuring of notes called Alexandria, which was carried out with Nomura in 2009, and the restructuring of a vehicle known as Santorini carried out with Deutsche Bank at the end of 2008.

Monte dei Paschi said it had launched the legal action with the civil court in the Tuscan city of Florence on Friday.

The world's oldest bank, Monte dei Paschi has been at the centre of a financial and political storm that has raised questions about the role of banking supervisors and also local politicians in the run-up to elections last week.

The bank aid on Thursday it had received a four billion euro state bailout needed to boost its capital base.

Mussari and Vigni have already been placed under investigation by prosectuors examining the bank's affairs.

($1 = 0.7649 euros)

(Reporting By Lisa Jucca; editing by Keith Weir)

FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article