Friday, July 29, 2005
The Parmalat investigation appears to be heating up with the focus now on several international banks. Parmalat suffered from a corporate fraud scandal.(see discussion here of paper written about the Parmalat Case)( also see post on the upcoming trial of its CEO here).
According to the Wall Street Journal here , prosecutors in Italy are looking at indicting several banks and securities firms. This article notes that "three executives at the Italian branch of Bank of America Corp." have already been charged. One of the firms listed in the Wall Street Jrl article is Morgan Stanley. It will be interesting to see what, if any, affect the recent civil settlement between Morgan Stanley and Parmalat has on these matters. Parmalat's website notes here the following within a press release of June 23rd:
"Parmalat and Morgan Stanley have announced today a proposal for global settlement of their mutual claims.
"The Euros 155 million agreement settles all existing and potentials actions and claims, including compensation of damages. The litigation was originated by transactions before that Parmalat was declared under Extraordinary Administration."
A press release here on July 19th shows the agreement was signed and consideration was received.