Italian central Bank Chief probed for insider trading

The Italian government said on Friday it would attempt to force Bank of Italy Governor Antonio Fazio to resign for insider trading in a bank takeover scandal.

Fazio, who is also being probed in Rome for abuse of office, said in a statement that he had not yet been formally notified by Milanese prosecutors that he is suspected of wrongdoing in the takeover of Banca AntonVeneta.

Earlier on Friday, Italian Premier Silvio Berlusconi told reporters the cabinet would hold an emergency meeting on Tuesday to discuss the scandal.

Italian Economy Minister Giulio Tremonti, who has repeatedly urged Fazio to step down, said the situation was "no longer acceptable."

The minister said he would propose that a new governor be named after consulting with the parliament and the opposition.

According to judicial sources, Milanese prosecutors have been investigating Fazio's role in the AntonVeneta takeover since September, after his close friend and former CEO of Banca Popolare Italiana (BPI) Gianpiero Fiorani was placed under investigation.

On Wednesday, Fiorani was arrested on suspicion of criminal conspiracy to embezzle.

Fazio's reputation was badly tarnished after published transcripts of wiretaps ordered by magistrates appeared to show that he and his wife worked behind the scenes to help BPI and Fiorani against Dutch rival ABN Amro.

ABN Amro eventually prevailed in its bid after Italian judicial probes blocked the BPI operation.

Fazio, 69, has already been quizzed by Rome prosecutors about his July 11 approval of BPI's bid for AntonVeneta. Fazio, who has an open-ended mandate, has resisted all pressure to resign, insisting that he did nothing wrong and has not broken any laws.

Source: Xinhua