January 29, 2013 / 6:38 PM / 5 years ago

Bank of Italy started sanctions against ex Monte Paschi chiefs in 2012

ROME, Jan 29 (Reuters) - The Bank of Italy was carrying out intensive checks over the mounting problems at the troubled Monte Paschi bank by late 2009 but sanctions against top bank executives came only after they had left the lender in 2012, a Bank of Italy document showed.

The document, deposited in parliament after a statement on the widening scandal by Economy Minister Vittorio Grilli, seeks to rebut charges that the central bank was lax in its oversight of Monte dei Paschi as it slid into crisis.

Monte Paschi, Italy's third-largest bank, had been weakened by the costly 9 billion euro 2007-08 acquisition of smaller peer Antonveneta and the Bank of Italy carried out controls to check its liquidity position.

Between May and August 2010 the central bank uncovered two risky structured repo deals the bank had sealed with Deutsche Bank and Nomura.

But it was only in May 2012 that the central bank decided to start a sanctions procedure against the top management of the bank, which had by then stepped down.

Former managing director Antonio Vigni was replaced in January 2012 and former chairman Giuseppe Mussari did not seek to have his contract renewed and left the bank in April of the same year.

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