CariFe probed for bankruptcy fraud

(ANSA) - Ferrara, May 20 - Prosecutors in the Emilia Romagna city of Ferrara are investigating Cassa di Risparmio di Ferrara (CariFe) bank on suspicion of fraudulent bankruptcy, local daily La Nuova Ferrara reported Friday.
    CariFe was rescued last November along with Banca Etruria, Banca Marche, and Cassa di Risparmio di Chieti (CariChieti) in an operation that made its subordinated bonds - which had been sold to small savers and investors, many of them pensioners - worthless.
    The four banks are now in receivership and the government has unveiled a compensation package for small savers, but some former bondholders are unhappy with it.
    Ferrara prosecutors are trying to identify which former CariFe managers and executives over the past decade made or abetted the decisions that ultimately led the savings bank to a 433-million-euro crack-up.
    CONSOB bourse regulator and prosecutors in other cities are investigating the conduct of the four banks in placing their own bonds with clients.