Italian central bank governor investigated in fraud, corruption probe: report

Italian central bank governor Ignazio Visco has been put under investigation in relation to a probe into alleged corruption and fraud, according to a report of Italian newspaper Il Fatto Quotidiano.

Il Fatto Quotidiano reported on Tuesday that the alleged fraud and corruption occurred when a bank based in central Italy, Banca Popolare di Spoleto (BPS), was put in the hands of administrators and subsequently sold last year to another bank, Banco Desio.

But later the Italian highest administrative court revoked the order following claims of BPS shareholders who suffered consistent damage because of the sale.

Another seven people have been reportedly put under investigation besides Visco in relation to the probe, including the then administrators and the current BPS President Stefano Lado, who is also Vice President of Banco Desio.

"Regarding the report on BPS which appeared today in the press, the Bank of Italy has no knowledge of any initiatives by the judicial authorities," sources of the Italian central bank were quoted as saying by Il Fatto Quotidiano.

Fraud and corruption in the Italian financial and political world have often made the headlines in the local press in recent years.

On Tuesday the first hearing of a major trial called "Capital Mafia," a graft scandal which involved the former head of the Rome street-cleaning agency as well as other high-level officials, took place in the Italian capital. Endit