Monte Paschi top investor to sue former executives, banks

SIENA, Italy Wed Mar 5, 2014 1:43pm EST

A man walks on a logo of the Monte Dei Paschi Di Siena bank in Rome September 24, 2013. REUTERS/Alessandro Bianchi

A man walks on a logo of the Monte Dei Paschi Di Siena bank in Rome September 24, 2013.

Credit: Reuters/Alessandro Bianchi

SIENA, Italy (Reuters) - The top investor in Italian bank Monte dei Paschi di Siena has decided to sue former members of its own board and banks that helped arrange a 600 million euros loan in 2011, it said in a statement.

The cash-strapped banking foundation, whose wealth has been wiped out by a sharp fall in the value of Monte dei Paschi shares in the past two years, ran up big debts to take part in two capital increases at the bank in 2008 and 2011.

J.P. Morgan, which advised the foundation in 2008 and led a pool of banks that lent money to the foundation in 2011, had no immediate comment.

(Reporting by Silvia Ognibene, writing by Silvia Aloisi)