(Adds source comments, bank comments)
MILAN/FLORENCE, March 27 Italy's financial police searched the Milan offices of Japanese bank Nomura on Wednesday as part of an investigation into Italian lender Monte dei Paschi di Siena, judicial sources said.
One of the sources said the police were looking for emails and documents, without elaborating.
The police declined to comment.
Financial police in Italy are responsible for investigations including tax evasions and financial fraud. They can seize assets and arrest people on the order of magistrates
Prosecutors in the city of Siena where Monte dei Paschi is based are investigating losses linked to risky derivatives trades carried out under Monte dei Paschi's previous management. . Prosecutors have alleged the trades were not fully disclosed as management wanted to conceal losses.
One of the trades, known as Alexandria, was carried out by Nomura.
Banca Nomura, the Milan branch of Japan's Nomura International, is not under investigation by Siena prosecutors, a judicial source said.
Nomura declined to comment.
Monte dei Paschi is seeking at least 700 million euros in damages from Nomura and two former Monte dei Paschi executives, a judicial source has told Reuters.
The bank is also asking for damages of at least 500 million euros from Deutsche Bank and the same former managers over a separate derivatives deal.
A source at the Siena prosecutors office said on Wednesday prosecutors had met a lawyer of Deutsche Bank a few days ago. The meeting had been requested by the lawyer who had handed over documents, the source added.
Deutsche Bank declined to comment. (Reporting By Silvia Ognibene and Stephen Jewkes; Editing by Elaine Hardcastle)