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Some of the world’s largest banks face charges that they helped to prolong the life of Parmalat when they knew, or should have known, something was wrong
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Parmalat ex-chief sentenced to 10 years
Calisto Tanzi, the former chief executive of Parmalat, which collapsed five years ago in a massive fraud, was sentenced to 10 years in prison by a Milan court
Banks in court over Parmalat
A number of the world’s largest banks are coming to trial in Milan at the end of the month for their alleged wrongdoing relating to the collapse of Parmalat in December 2003. Bank of America, Citigroup, UBS, Morgan Stanley and Deutsche Bank are among dozens of institutions that have been investigated since the Italian dairy company imploded amid a vast fraud.
Prosecutors and civil cases allege that the banks helped to prolong the life of the company when they knew or should have known something was wrong. Some institutions have also faced accusations that they did not have proper procedures in place to prevent wrongdoing by employees. None of the institutions have admitted wrongdoing.
The Milan cases, starting January 22, focus on the broad charge of market-rigging – the banks are accused of improperly manipulating Parmalat’s share price by arranging or assisting in financial transactions. Parmalat frequently trumpeted the successful placing of bonds as a sign of its health, and its shares sometimes shot up on the news.
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Comment and Analysis
Parmalat fraud has generated too little reform
The response to the Parmalat scandal has not gone nearly deep enough, writes Bruno Cova of international law firm Paul Hastings.
Schooled by scandal
The Sarbanes-Oxley Act in the US, together with initiatives to shake up accountancy and auditing in Europe, might have been expected to win the accountancy profession a reprieve from scandal
Did the banks do enough to avoid Parmalat scandal?
Twelve months on from what became known as ‘Europe's Enron’, there is no peace in sight between Enrico Bondi and the dozens of banks that he says contributed to the Italian company's downfall.
Parmalat: A scandal ‘Made in the EU’
Is Europe too complacent about accounting scandals?
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