Former execs from troubled Italian bank to stand trial

MILAN – Two former executives of troubled Italian bank Monte dei Paschi di Siena will face trial on charges of market-rigging and false accounting for financial reports made after uncovering derivative losses made by previous management.

An investigating judge set a July 17 opening trial date for former chairman Alessandro Profumo and former CEO Fabrizio Viola, despite the fact that prosecutors had requested that the investigation be closed. With that motion failed, prosecutors argued that the former executives inherited problems from their predecessors and were not trying to trick the markets when they apparently misclassified the restated accounts.

Under Viola, Monte dei Paschi put the losses from three derivative trades that were concealed at 730 million euros.

Profumo is currently CEO of defence contractor Leonardo, while Viola is a private financial adviser.