Derivatives and the Italian inquisition
New angles
Under Article 129 of the 1993 Banking Consolidation Act, the Banca d’Italia has supervisory powers over all capital transfers or flows of money totalling €50 million or more. Even before Parmalat, and Cirio, the major Italian corporate scandal of recent years, Banca d’Italia was apt to invoke its powers under Article 129 to restrict the terms product structurers could offer. For example, in 2003 it capped the coupons structured products could offer at 200% of the Libor rate
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