UK-based banks accused of massive mis-selling in Italy
Thursday, 13 September, 2012 Leave a comment
You couldn’t make it up!
Several UK-based investment banks have been accused of mis-selling financial products to Italian cities and regions.
Nomura, UBS and Deutsche Bank are among those accused by Italian prosecutors of mis-selling derivatives in deals worth 35bn euros (£28bn).
The banks deny wrongdoing, but refused to comment further because the matter is now before the Italian courts.
BBC Newsnight discovered that London’s financial watchdog was made aware of the mis-selling, but failed to act.
Now those Swap derivatives look as if they could further damage the entire Italian economy – the third largest in the eurozone.