ANTONVENETA: ADUSBEF CHIEDE CHE PROCURA MILANO INCRIMINI CONSOB E BANKITALIA PER OMESSA VIGILANZA

Trial of Italian former central banker starts, and stops ( International Herald Tribune del 24/10/2008 ) Stampa - Guida MILAN: The trial of a former governor of the Bank of Italy on charges relating to a 2005 takeover scandal started Thursday but was immediately suspended for a month to hear a motion to broaden the proceedings. Antonio Fazio, who led the central bank from 1993 to 2005, and 17 other defendants face charges stemming from the battle by the Dutch bank ABN AMRO to take over an Italian rival Banca Antonveneta. BPI lost out to ABN AMRO in the fight over Antonveneta. Fazio, 72, did not appear in court Thursday. Prosecutors accuse him of supporting a rival bid by Banca Popolare Italiana. He resigned from the central bank in December 2005, denying any wrongdoing. Fazio is accused of market-rigging. The other suspects - individuals and companies - face charges including conspiracy, market-rigging, insider trading and obstructing oversight. The trial was suspended until Nov. 20 to hear a motion by a consumer association called Adusbef. The group is seeking to include the central bank and the Consob stock market regulator in the trial as civil defendants. Today in Business with Reuters Greenspan 'shocked' that free markets are flawed Chinese banks brace for housing aftershock U.S. stocks end volatile session mixed Adusbef is asking for ¬10 million, or $12.83 million, in damages for what it says was lack of oversight and to become a civil plaintiff. Defendants include Luigi Zunino, founder of the real estate company Risanamento, and the central bank's former surveillance chief, Francesco Frasca, who deny the charges. Another 64 people or companies accused in the case have entered plea-bargain agreements, including the former BPI chief, Gianpiero Fiorani. The list of witnesses submitted by prosecutors include the Bank of Italy's current governor, Mario Draghi; the Consob chairman, Lamberto Cardia; the investor Gilberto Benetton and Cesare Geronzi, now chairman of the investment bank Mediobanca.

24/10/2008

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