“Monte dei Paschi (MPS), the world’s oldest bank dating back to 1472, is under investigation for covering up losses on derivatives and paying over the odds for its €9bn (£7.8bn) purchase of Banca AntonVeneta in 2007. Italy’s press alleges that the inquiry has unearthed a network of bribes and kickbacks, a claim denied by the bank. The lender has lost €6.4bn since early 2011 and the damage is mounting. What makes the case so delicate are the bank’s close ties to the Italian political Left. MPS is 35pc-owned by a foundation that answers to the PD-controlled Tuscan province of Siena and was run by ex-Communist Giuseppe Mussari until his abrupt exit this month.”
