Banks cleared after probe into Parmalat

City A.M. Reporter
A COURT in Milan has cleared Citigroup, Bank of America, Deutsche Bank and Morgan Stanley of market-rigging in a high-profile trial related to the 2003 collapse of food giant Parmalat.

The four international banks had been charged for allegedly helping the Italian food group mislead investors at the time of the Parmalat scandal, dubbed Europe’s Enron.

An Italian prosecutor had asked earlier this year that they should be fined and that about €120m (£105m) of their profits should be impounded.

The four banks had repeatedly denied any wrongdoing. The Milan court also cleared all the executives at the four banks that had been charged in the trial.