Milan Police Seize UBS, JPMorgan, Deutsche Bank Funds

[ThomCat]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aisvHIHmcwQs&refer=home

April 28 (Bloomberg) -- Milan’s financial police seized 476 million euros ($620 million) of assets belonging to UBS AG, Deutsche Bank AG, JPMorgan Chase & Co. and Depfa Bank Plc amid a probe into alleged fraud linked to the sale of derivatives.

The police froze the banks’ stakes in Italian companies, real estate assets and accounts, the financial police said in a statement today. The assets seized yesterday also include those of an ex-municipality official and a consultant, the police said.

The City of Milan is suing the four banks after it lost money on derivatives it bought from the lenders in 2005. The securities swapped a fixed rate of interest on 1.7 billion euros of bonds for a variable rate that was losing the city 298 million euros as of June. Milan is among about 600 Italian municipalities that took out 1,000 derivatives contracts worth 35.5 billion euros in all, the Treasury said.

“Milan is an important case because it can be used as an example by others,” said Alfonso Scarano, who is heading a study into the trades by AIAF, a group representing Italian financial analysts. “This is a unique time for borrowers to shed light on their potential losses and renegotiate contracts” to take advantage of interest rates that have fallen to record lows. AIAF will next week testify before the Italian Senate’s inquiry into the cities’ use of derivatives contracts.

.........

The fallout continues. I wonder if the US will ever take as firm a hand as the European governments seem to be taking. They aren't just shoveling billions into bank pockets.

[Greyhound]

1. Do you really wonder?

Look at who we've been stuck with to "fix the financial system".

Thank you sir! May I have another?

All sheep share a common destiny.
:kick: & R

[aquart]

2. WTF? Was anyone expecting this?

Go Italy!

[ThomCat]

4. Of course, it's not being mentioned in the US news.

x(

The MSM doesn't feel that there's any reason we'd want or need to know that the major banks are having their assets confiscated internationally. :eyes:

[Selatius]

3. Italy is simply doing what the US used to do under leaders like FDR and Truman.

We didn't elect people like that in 2008, and we haven't for decades.

[ThomCat]

6. Wouldn't it be nice if the "Change" we were getting

included actual efforts to clean up the fraud in the Finance industry?

But, of course, when even the politicians themselves joke about the senate being owned by wall street and Goldman Sachs has a revolving door with all the top jobs in the Treasury Department what do we expect? The US will coddle and protect the banks, and other nations will have to do the hard work of fighting fraud.

[aquart]

7. Obama is enthralled by the Chicago School.

[Joe the Liberal]

5. HA! the US will never take as firm a hand as the European governments.........

In fact we do the opposite of that here, If we even tried everyone would be screaming "fascist socialists taking away the banks money" or some other nonsense.

Winston Churchill once said this about us....

"Americans can always be counted on to do the right thing...after they have exhausted all other possibilities."

Boy was he right.

[bobthedrummer]

8. .

[Richard Steele]

9. Wow, so FRAUD is still considered a crime in some countries. Who knew?

:shrug:

Good for them.

[Baby Snooks]

10. Particularly in Italy...

This is a country that sent Sophia Loren to prison and yes it takes fraud very seriously. Especially when the fraud is committed against the state.

They may still have "debtor's prison" as it was called at one time. There is no such thing as a Chapter 7 in Italy in any case. You owe and can't pay you lose everything. And may still go to prison.

I believe France and Spain have similar laws. This could get very interesting. Maybe Phil Gramm will end up in prison after all. After he's extradited. I would love it if he gets tangled up in this.

[HCE SuiGeneris]

11. and Amurika stands immobilized in its fetid decay...

we are shamed by our inaction

[xchrom]

12. Italy -- doing what the U.S. government -- the U.S. admin

should be doing now.

will wonders never cease?

:rofl:

[autorank]

13. I truly regret not seeing this earlier. Wow!

This might be the first step in an unraveling. I'm sure that there will be massive push back on
the arrest but if it stands, it bears out everything Black said on Moyers.

Damn! Thank you Italy!

[bobthedrummer]

14. bttt