REVEALED: Deutsche Bank made £367m VANISH in shady sinkhole deal with failing Italian bank
GERMANY’s largest lender made a ‘sinkhole’ of £367m in losses disappear on behalf of Italy’s crumbling Banca Monte dei Paschi di Siena, it has been revealed.
By SIOBHAN MCFADYEN
Express.co.uk
Tue, Jan 24, 2017
And it’s alleged the whopping transaction was processed during the 2008 market crash in a bid to keep investors in the dark.
Paschi is about to be taken over by the Italian government in the biggest bank bail out since the 1930s.
According to a shocking new report, Deutsche Bank feared there would be a run on its Italian client should news of the substantial one trade loss get out.
So senior officials cooked up a scheme that would allow them to trade the losses for income and spread the real deficit over a period to prevent intervention from the state, it has been claimed.
Italian courts are currently probing the antics of what happened at the bank in a trial which is expected to run throughout 2017.
Prosecutors indicted 13 former and current managers from the three banks over the case focussing on the trading of complex derivatives which were apparently used to conceal losses.
Insiders say bankers at Deutsche and Banca Monte dei Paschi di Siena were afraid recording the substantial loss would tip the world’s oldest bank into oblivion.
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