The Buzz | Former CEO of Italy’s Veneto Banca under house arrest
Italian financial police have arrested the former CEO of Veneto Banca and seized millions in cash, shares and property as part of a wide-ranging investigation.
Police said yesterday that prosecutors in Rome are investigating allegations of market rigging and interfering with regulatory authorities dating from 2013-2014. The regional lender’s former CEO, Vincenzo Consoli, has been placed under house arrest.
Veneto Banca, based north of Venice, was rescued in June by a private recapitalization fund organized by the government.
Prosecutors are investigating allegations that the bank loaned money to customers so they could buy shares, while concealing the transaction from regulators, in an exercise aimed at making the bank appear more solid than it was. Consoli resigned last year after two decades as CEO. The bank had no immediate comment.
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