BofA to stand trial in Parmalat case
From Times Wire Services
Bank of America Corp. said it would stand trial on administrative charges related to the 2003 bankruptcy of Italian dairy company Parmalat Finanziaria.
Bank of America, one of Parmalat’s biggest lenders, faces charges that it didn’t have sufficient internal controls to prevent employees from acting improperly before Parmalat collapsed in Europe’s biggest bankruptcy in December 2003. Judge Cesare Tacconi in Milan, Italy, issued the ruling.
“These charges against Bank of America are purely administrative in nature,” the bank said. Possible penalties include the loss of a license to operate in Italy, fines and confiscation of profit from Italian transactions.
