ROME Jan 29 The Bank of Italy was carrying out
intensive checks over the mounting problems at the troubled
Monte Paschi bank by late 2009 but sanctions against
top bank executives came only after they had left the lender in
2012, a Bank of Italy document showed.
The document, deposited in parliament after a statement on
the widening scandal by Economy Minister Vittorio Grilli, seeks
to rebut charges that the central bank was lax in its oversight
of Monte dei Paschi as it slid into crisis.
Monte Paschi, Italy's third-largest bank, had been weakened
by the costly 9 billion euro 2007-08 acquisition of smaller peer
Antonveneta and the Bank of Italy carried out controls to check
its liquidity position.
Between May and August 2010 the central bank uncovered two
risky structured repo deals the bank had sealed with Deutsche
Bank and Nomura.
But it was only in May 2012 that the central bank decided to
start a sanctions procedure against the top management of the
bank, which had by then stepped down.
Former managing director Antonio Vigni was replaced in
January 2012 and former chairman Giuseppe Mussari did not seek
to have his contract renewed and left the bank in April of the