ITALY / FILE: Gianpiero Fiorani former chief executive of the Banca Popolare Italiana bank (Pop Italiana) arrested for suspected embezzlement

Record ID: 565293

  • Title: ITALY / FILE: Gianpiero Fiorani former chief executive of the Banca Popolare Italiana bank (Pop Italiana) arrested for suspected embezzlement
  • Date: 14th December 2005
  • Summary: VARIOUS OF NEWSPAPER HEADLINES WITH REPORTS OF FIORANI'S ARREST ON FRONT PAGE
  • Embargoed: 29th December 2005 12:00
  • Keywords:
  • Topics: Crime / Law Enforcement
  • Reuters ID: LVA8PJVWJ6JUPOL8REE3AWW3DF36
  • Story Text: Former chief executive of the Banca Popolare Italiana bank (Pop Italiana), Gianpiero Fiorani, was arrested on Tuesday (December 13) evening on suspicion of criminal conspiracy to embezzle.
    Fiorani is currently being held in Milan's San Vittorio prison, where he is being investigated by magistrates for possible market rigging, obstructing the work of regulators and insider trading in a battle for Banca Antonveneta.
    Pop Italiana mounted a bid for Antonveneta -- more than double its size -- to try to stop Dutch ABN AMRO from becoming the first foreign bank to buy a major Italian lender.
    The news of the arrest dominated front pages on major Italian newspapers on Wednesday (December 14). Newspapers said prosecutors had accused Fiorani and four other businessmen who were also arrested of making illegal payments to politicians and using clients' money to cover losses at the bank. On Wednesday, Italy's financial police carried out more than a dozen searches on current and former executives of Pop Italiana in Milan and the northern town of Lodi.
    There was little surprise shown from people travelling to work after hearing the news accustomed to the frequent financial scandals which hit the country.
    "We expected it, it was in the air. I think that, given what he seems to have done, to arrest him was the right thing" said Paolo Buzzo on his way to work.
    "Italian justice must become quicker to act. This arrest is maybe a signal sent to all powerful people who try to take advantage that they should be more careful" said student Massimo Torace.
    The arrest has caused even more problems for beleaguered Bank of Italy Governor Antonio Fazio. Fazio was seen as favouring his close friend's bid for Antonveneta after transcripts of wire taps revealed late night conversations he had with Fiorani, who addressed him by the nickname "Tonino," and discussed the takeover with Fazio's wife. An Italian newspaper has called for the governor to resign.
    News of the arrest came on the same day the European Commission launched legal proceedings against Italy over the way the central bank handled foreign bids for Italian banks.
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