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Four banks Milan derivatives convictions quashed

Deutsche Bank, JPMorgan, UBS, Depfa and employees cleared

07 March, 11:51
Four banks Milan derivatives convictions quashed (ANSA) - Milan, March 7 - A Milan appeals court on Friday overturned the convictions of four foreign banks in a case involving the sale of derivatives to the city of Milan.

The court quashed the convictions handed down by a judge in December 2012 on Deutsche Bank, JPMorgan Chase & Co., UBS AG, and Depfa Bank Plc. and annulled the confiscation of 89 million euros in damages.

The court also cleared nine current and former bank employees who had received suspended sentences of six months to eight months.

It said the alleged crime "had not been committed".

The trial involving the four banks began in May 2010, when the banks stood accused of defrauding the city of Milan by hiding how much they earned on the derivatives.

Prosecutors alleged Milan lost 105 million euros as part of the sale of bonds worth 1.69 billion euros between 2005 and 2007.

Prosecutors hailed the original convictions as "historic".

The banks settled with the city of Milan in March 2012.