Bank of Italy governor questioned on takeover

Bank of Italy Governor Antonio Fazio was questioned for five hours today by magistrates investigating a bank takeover scandal…

Bank of Italy Governor Antonio Fazio was questioned for five hours today by magistrates investigating a bank takeover scandal that has prompted calls for his resignation.

Mr Fazio's court appearance put the affair in the hands of the judiciary after Italy's politicians appeared to have lost interest because of their inability to oust him.

Communications Minister Mario Landolfi reiterated that it would have been better if Mr Fazio had resigned and said he regretted that the case had ended up in court.

"Unfortunately I see there is a legal remnant to the affair which certainly doesn't help to improve the atmosphere," he said in a radio interview.

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Fazio was placed under official investigation in August over accusations that he unfairly favoured Banca Popolare Italiana over Dutch competitor ABN Amro for control of domestic lender Antonveneta.

The Bank of Italy's chief inspector, Francesco Frasca, is also being investigated for abuse of office.

Being placed under investigation does not mean charges will necessarily be brought. There was no immediate comment from the Bank of Italy on Monday's questioning, but it has previously reiterated it handled the takeover battle correctly.