BusinessCompany NewsBanks deny Parmalat charges

Banks deny Parmalat charges

Banks would not have lent money if they thought it was in trouble, lawyers argue

Banks would not have lent money to Parmalat if they thought it was in
trouble, lawyers argued yesterday on the first day of the trial of four
investment banks over their role in the milk company’s collapse.

‘Neither Citigroup nor its employees did anything wrong… Why would the bank
have lent $500 million to Parmalat if it thought it was in trouble?’ asked Nerio
Dioda, the lawyer for the bank, on the first day of the trial in Milan,
Bloomberg
reported.

Citigroup, Deutsche Bank, UBS and Morgan Stanley have all been sent to trial,
on charges that they manipulated the market by withholding information about
Parmalat’s problems.

The company collapsed in 2003 after disclosing a huge accounting black hole.

The charges of market manipulation carry a potential sentence of up to 12
years, and fines for the banks of up to €1m for each count.

Further Reading:

Read
the Bloomberg story: Citigroup, UBS Lawyers Deny Wrongdoing on Parmalat

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

12m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor