Italy Takes Lead in Investor Derivative Backlash

Summary


MILAN (Reuters) - Italian cities that gorged on opaque financial derivatives are leading a European backlash against the banks that sold them as the costs now threaten their already over-stretched public coffers - and possibly national security.

Banks globally face a rising tide of claims from clients who bought sophisticated financial products that soured in the 2007- 2009 crisis. But Italian civic authorities stand out for the enthusiasm with which they snapped them up during the credit boom - and the extent to which they now rue their decision.

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Extract


Italy Takes Lead in Investor Derivative Backlash

Municipalities failed to take into account the risks and the costs of complex deals, and keen prosecutors in Italy are now investigating whether banks mis-sold product...

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