MILAN—A Milan judge ordered UBS AG, J.P. Morgan Chase & Co., Deutsche Bank AG and Depfa Bank PLC, now a unit of Hypo Real Estate AG, to stand trial for the alleged fraudulent sale of -1.68 billion ($2.31 billion) in derivatives.
MILAN—A Milan judge ordered UBS AG, J.P. Morgan Chase & Co., Deutsche Bank AG and Depfa Bank PLC, now a unit of Hypo Real Estate AG, to stand trial for the alleged fraudulent sale of €1.68 billion ($2.31 billion) in derivatives.
The banks are accused of having earned about €100 million in “illicit profits” from irregularities in the sale of derivatives linked to a bond issue by the City of Milan, conducted between 2005 and 2007. “It is the first time in the world that banks have to stand trial for the sale of derivatives to municipalities,” Alfredo Robledo, the prosecutor bringing the case against the banks, said in a telephone interview.
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