|
|
09 Jan 2008
Four of the world's largest investment banks have been ordered to stand trial, starting January 22 in Milan, for stock market manipulation during the collapse of Parmalat in 2003.
A judge said Citigroup, Morgan Stanley, UBS and Deutsche Bank knew Parmalat was bankrupt but continued to offer bond issues, rather than telling the market, in order to make fees from the dying company, The Business magazine reports.
However, JP Morgan, Bank of America, Banco Santander and ABN Amro, which were also among banks providing financial services to Parmalat, have not been charged. Enrico Biondi, the current head of Parmalat, said the four banks knew of Parmalat's problems but continued to offer to raise more debt for the company.
The banks deny the charges. UBS said its conduct had been ‘proper’, while Morgan Stanley would ‘vigorously contest’ the charges, Citigroup said the trial would show it was a victim and Deutsche Bank denied any wrongdoing.
Further reading:
Grant Thornton faces ₤5bn claim from Parmalat
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment