Deutsche Bank, UBS Convicted by Milan Judge for Fraud Role

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Deutsche Bank, JPMorgan Chase, UBS and Depfa Bank Plc were convicted by a Milan judge for their role in overseeing fraud by their bankers in the sale of derivatives to the city of Milan.

Bloomberg reports that Judge Oscar Magi in Milan ordered that about $119.6m of assets be seized from the banks and that the firms pay sanctions of $1.3m each. He also convicted nine bankers of fraud in the ruling.

Wednesday’s convictions come as global authorities investigate claims that more than a dozen banks altered submissions used to set benchmarks such as Euribor and Libor to profit from bets on interest-rate derivatives.

'This marks the beginning of the setting of new standards of proper behavior by banks', said Gustavo Piga, a professor at University of Rome Tor Vergata and former adviser to the Italian Treasury.

In separate statements, the banks said they disagree with the verdict and plan to appeal. They had been on trial since May 2010, accused of defrauding Milan by hiding how much they made on the derivatives.

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Deutsche Bank, UBS Convicted by Milan Judge for Fraud Role

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