Parmalat Probe Is Said to Target Seven Banks

Milan prosecutors probing the collapse of Parmalat, once Italy’s biggest food and dairy company, are investigating current and former employees at seven banks, people familiar with the probe said.

Citigroup Inc., Bank of America Corp., Deutsche Bank, Morgan Stanley, UBS, Banca Intesa’s fund unit Nextra and Banca Popolare di Lodi were added to the probe’s official roster, said the sources, who asked not to be named.

Prosecutors are trying to determine how much the lenders, which helped Parmalat raise more than $18 billion, knew about the state of the firm’s finances when they sold their securities to investors. The banks have denied any wrongdoing.