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Empresas y finanzas

Monte Paschi says closing Alexandria trade to cause 1 billion euro gross loss: letter


    MILAN/SIENA (Reuters) - Monte dei Paschi di Siena said the closure of a derivatives contract with Nomura by end-July, as requested by the European Central Bank, could trigger a pre-tax loss of around 1 billion euros ($1 billion), according to a letter from the bank to prosecutors.

    In the letter dated Feb 18 and seen by Reuters, Monte dei Paschi said the ECB had told it to close out the loss-making trade known as Alexandria by July 26 "unless a proven legal impediment arose in the future as a consequence of the ongoing civil proceeding or criminal investigation."

    Closing Alexandria would stop the bank pressing ahead with any damage-seeking proceedings and would weaken its case in a criminal probe under way in Milan into the trade, it said.

    The ECB declined to comment on the issue.

    (Reporting by Silvia Ognibene, writing by Stephen Jewkes; editing by Francesca Landini)