zerohedge.com / by Tyler Durden / Sep 1, 2016
Two weeks ago we were surprised to read that Italian prosecutors had launched a probe into potential accounting fraud and market manipulation by the executives of Italy’s third largest, and the world’s oldest bank, Monte Paschi just weeks after its most recent bailout was announced. It didn’t last long: moments ago Reuters reported that less than two weeks after news of the probe leaked, Milan prosecutors have filed a request to shelve a probe for alleged market manipulation and false accounting against the chief executive of Monte dei Paschi di Siena and the bank’s former chairman, three judicial sources said.
According to Reuters, news of the probe, which emerged last month, risked undermining investor sentiment in the bank’s management as it seeks to raise up to 5 billion euros in an emergency capital increase by the end of the year. A judge will now be called to rule on the request, which was submitted by prosecutors on Thursday.