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Deutsche Bank Defendant Defies Prosecutors in Paschi Trial

Sonia Sirletti, Vernon Silver
Deutsche Bank Defendant Defies Prosecutors in Paschi Trial

An ex-Deutsche Bank AG banker told a Milan court that the controversial Santorini transaction signed with Banca Monte dei Paschi di Siena SpA was a risky deal for the German bank and was properly accounted for by the Italian lender, challenging the prosecution’s case. Marco Veroni, the first Deutsche Bank defendant questioned by prosecutors at the Milan trial, disputed the accusation that the deal had no real risk and was constructed to disguise an ongoing loss at the Siena bank with a temporary gain. “Deutsche Bank could only sign a deal that implied an economic risk, and this wasn’t an exception,” he said at a hearing in Milan Thursday.