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3 years ago
Appeals court acquits banks in key Milan derivatives case
March 7, 2014 / 10:43 AM / 3 years ago

Appeals court acquits banks in key Milan derivatives case

MILAN, March 7 (Reuters) - An Italian appeals court acquitted four international banks including Deutsche Bank and UBS on Friday, overturning a previous verdict that had found them guilty of fraud for mis-selling derivatives to the city of Milan.

Depfa, Deutsche Bank, JPMorgan and UBS had appealed against a landmark verdict from December 2012 ordering the seizure of 89 million euros ($123 million) and fines for each of 1 million euros. Nine bank employees had also been handed suspended jail sentences of up to eight months, but the appeals court said there was no case to answer.

Milan prosecutor Piero De Petris last month asked for the individual fines and the seizure to be upheld with only a small reduction for JPMorgan. He also asked for jail sentences of around six months for four of the nine bank employees.

The case relates to a swap contract signed by the city of Milan council when it issued a 1.68 billion euro, 30-year bond in 2005.

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