Under scrutiny

Derivatives have once again come under the microscope in Italy following their part in financing Banca Popolare Italiana's failed bid for Antonveneta last year. Bankers argue that derivatives have been unfairly targeted, but could the controversy derail the country's corporate derivatives market? John Ferry investigates

The Parmalat scandal may be starting to fade from memory, but Italy's capital markets have become mired in another controversy. Last year's failed hostile takeover bid by Banca Popolare Italiana (BPI) for the much larger Banca Antonveneta, the arrest in December of BPI's chief executive, Gianpiero Fioriani, amid allegations of market abuse, and the subsequent resignation of Antonio Fazio, the Bank of Italy's governor, have cast a dark pall over the Italian market. And, once again