January 22, 2013 / 8:45 AM / 5 years ago

Italy's Monte Paschi loses $293 mln on derivative trade-paper

MILAN, Jan 22 (Reuters) - A derivative contract designed by Nomura for Banca Monte dei Paschi di Siena, Italy’s third biggest lender, will register a loss of 220 million euros ($292.9 million) in the bank’s results for 2012, Italian daily Il Fatto Quotidiano reported on Tuesday.

The newspaper said the existence of the 2009 derivative trade, dubbed Alexandria, was only discovered by the bank’s new management in October last year.

It said accountancy firm Pricewaterhouse and financial advisor Eidos were making checks to establish the size of the loss linked to the contract.

A spokesman for Monte dei Paschi, which last week said it was carrying out checks over past structured finance operations that are still in its portfolio, declined to comment. Nomura in Italy was not immediately available for comment.

Monte dei Paschi’s share price was down 3 percent at 0.28 euros by 0842 GMT.

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