Dexia faces fraud charges over ‘hidden costs’ in swaps deal

Italian fraud trial could spell trouble for other banks providing municipal swaps contracts

In late 2002, Graziella De Castelli, the Italian city of Prato’s chief accountant, entered into an €83 million ($91 million) notional interest rate swap with the local subsidiary of Dexia in order to hedge its funding costs. The swap was more than €1 million in the negative to the city at inception, and a small upfront premium subsequently paid to Prato by the Franco-Belgian lender was not enough to restore the balance. 

Almost 15 years later, Prato’s municipal government is hoping to get its

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here