New management helps Tuscan bank shares rise
The new management of Monte dei Paschi di Siena, the Tuscan bank at the centre of a widening derivatives scandal, has sought to draw a line under the episode despite finding evidence of “clear errors” in the accounting of those transactions.
Fabrizio Viola, chief executive, said the three lossmaking deals at the centre of the revelations were the only ones the bank had discovered that were unaccounted for after several months of investigating its entire financial portfolio.
Mr Viola also confirmed that the losses related to the trades would come in at €730 million. Shares in the bank rose more than 6 per cent after his comments.
The move by the bank came amid escalating judicial action against its former management and questions about regulatory supervision. – Copyright The Financial Times Limited 2013