Italian court convicts Deutsche Bank, Nomura in Monte Paschi derivative trial

MILAN (Reuters) – An Italian court on Friday convicted 13 former bankers from Deutsche Bank, Nomura and Monte dei Paschi di Siena over derivative transactions that prosecutors say helped the world’s oldest bank conceal massive losses.

FILE PHOTO: The logo of Deutsche bank is seen in Hong Kong, China July 8, 2019. REUTERS/Tyrone Siu/File Photo

The verdict, read in court by lead judge Lorella Trovato, also ordered the seizure of 64 million euros ($70.5 million) from Deutsche Bank (DBKGn.DE) and 88 million euros from Nomura (8604.T) as part of the sentence.

Monte dei Paschi reached a settlement with the court over the case in 2016 at a cost of 10.6 million euros.

The case centres on two controversial derivatives deals – known as Alexandria and Santorini – that Nomura and Deutsche Bank arranged for Monte dei Paschi in 2009.

Prosecutors said the deals helped Monte dei Paschi, which was founded in 1472 and is Italy’s fourth biggest lender, hide more than 2 billion euros of losses racked up after the costly acquisition of a smaller rival in 2008.

“We are disappointed with the verdict. We will review the rationale for it once it is published,” Deutsche Bank said in a statement. Nomura had no immediate comment.

The scandal, together with more losses suffered by the bank during the euro zone debt crisis, threatened to destabilize Italy’s financial industry and forced the Siena-based lender to seek an 8 billion euro state bailout in 2017.

In the trial, which started in Milan in December 2016 and took 100 hearings to complete, the three

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