TRANI, Italy Jan 20 The head of the supervisory
board at Intesa Sanpaolo and a former chief executive
are under investigation over a series of derivatives contracts
sold by the bank to a businessman in southern Italy, a judicial
source said on Monday.
The probe, which focuses on events dating back to 2004-08
and also involves 13 other employees of the bank at the time,
alleges that Intesa made 100,000 euros ($135,600) in illicit
profits from the trades, the source said.
Intesa, Italy's biggest retail bank, denied in a statement
any allegations of wrongdoing and said it was fully cooperating
with judicial authorities.
The investigation by magistrates in the southern city of
Trani centres on interest rate swaps which prosecutors said
Intesa sold to a businessman who had opened a 700,000 euro
mortgage with the bank, the source said.
Among those under investigation for alleged fraud are
Giovanni Bazoli, chairman of Intesa's supervisory board, and
Corrado Passera, who stepped down as Intesa's CEO in 2011 to
join Mario Monti's technocrat government as industry minister,
the source added.
($1 = 0.7376 euros)
(Reporting by Vincenzo Damiani, Writing by Silvia Aloisi,
Editing by Paola Arosio and Mark Potter)