Banks Cleared In “European Enron” Case

Published by: Frank Galvano on 18th Apr 2011 | View all blogs by Frank Galvano
Banks Cleared In “European Enron” Case

A court in Milan, Italy has cleared four major banks of market-rigging charges in a high-profile trial related to the 2003 collapse of food giant Parmalat.  Citigroup, Bank of America, Morgan Stanley and Deutsche Bank had been accused of helping the Italian food conglomerate mislead investors at the time of the Parmalat scandal, which some have dubbed the “Enron of Europe.” 

Earlier this year, an Italian prosecutor asked that the four banks be fined and that at least 120 million euros, ($173.5 million), should be seized.  All four banks have consistently denied any wrongdoing in the matter.

Parmalat collapsed in 2003 under the weight 14 billion euros in debt.  The company's bankruptcy wiped out the savings of more than 100,000 retail investors who had bought its investment-grade corporate bonds.  Italy's biggest listed food group, Parmalat is now at the center of a battle for its control between French dairy giant Lactalis and a group of Italian investors trying to assemble a consortium.

Monday's ruling, meanwhile, cleared not only the banks, but all executives who had been charged were cleared, as well.  Calisto Tanzi, Parmalat's founder and acting CEO at the time of the scandal, has been sentenced to 18 years in prison after he was found guilty on charges of fraudulent bankruptcy and criminal conspiracy in one of a handful of trials related to Parmalat's collapse.

Comments

0 Comments

     
Please login or sign up to post on this network.
Click here to sign up now.

Latest DT's

  • View DT's
    Here's a great bio that Full in Bloom did for the band Possessedhttp://fullinbloommusic.com/biography-possessed.html View DT's
    3 years ago by Geno
  • View DT's
    Rated: PG-13 In Theaters: January 24th Director: Stuart Beattie Starring: Aaron Eckhart, Bill Nighy, Yvonne ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 10th Director: Renny Harlin Starring: Kellan Lutz, Gaia Weiss, Scott Adkins View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: December 4th Director: Scott Cooper Starring: Christian Bale, Casey Affleck, Zoe Saldana, Sam ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: December 13th Director: Peter Jackson Starring: Ian McKellen, Martin Freeman, Richard ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 3rd Director: Gregory Plotkin Starring: Andrew Jacobs, Jorge Diaz, Gabrielle Walsh View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: TBD In Theaters: February 7th Director: George Clooney Starring: George Clooney, Matt Damon, Bill Murray, Cate ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 17th Director: Tim Story Starring: Ice Cube, Kevin Hart, John Leguizamo, Bruce ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 17th Directors: Matt Bettinelli-Olpin, Tyler Gillett Starring: Allison Miller, Zach ... View DT's
    3 years ago by dallaseste

Top Authors

Subscribe