MILAN, March 7 An Italian appeals court
acquitted four international banks including Deutsche Bank
and UBS on Friday, overturning a previous
verdict that had found them guilty of fraud for mis-selling
derivatives to the city of Milan.
Depfa, Deutsche Bank, JPMorgan and UBS had appealed
against a landmark verdict from December 2012 ordering the
seizure of 89 million euros ($123 million) and fines for each of
1 million euros. Nine bank employees had also been handed
suspended jail sentences of up to eight months, but the appeals
court said there was no case to answer.
Milan prosecutor Piero De Petris last month asked for the
individual fines and the seizure to be upheld with only a small
reduction for JPMorgan. He also asked for jail sentences of
around six months for four of the nine bank employees.
The case relates to a swap contract signed by the city of
Milan council when it issued a 1.68 billion euro, 30-year bond