Judge rejects Monte Paschi prosecutor's seizure request against JP Morgan


(Corrects headline to read "judge" instead of "court")

SIENA, Oct 30 (Reuters) - An Italian judge has rejected aprosecutors' request to seize just under 200 million euros ($275million) of funds from JP Morgan as part of aninvestigation into Banca Monte dei Paschi di Siena's acquisitionof a smaller rival, a source with direct knowledge of the mattersaid.

Prosecutors allege that JP Morgan withheld information fromItalian regulators about a 1 billion-euro ($1.4 billion)financing the New York-based bank arranged for Monte Paschi'stakeover of regional lender Antonveneta in 2008.

The source did not say why the prosecutors had requested theasset seizure.

A spokewoman fo JP Morgan in Italy said the bank, which hasdenied any wrongdoing, had no immediate comment to make onWednesday.

A judge will decide on March 6 whether to indict JP Morgantogether with seven individuals, including Monte dei Paschi'sformer chairman and director general, for allegedly obstructingregulators. ($1=0.7262 euros) (Reporting by Silvia Ognibene; Writing by Silvia Aloisi;Editing by Greg Mahlich)

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