ROME- An Italian audit court prosecutor said on Wednesday U.S. bank Morgan Stanley could make a plea bargain in a legal case over derivatives contracts struck with the Treasury in Rome, but was more likely to dispute the local court's jurisdiction.
The case relates to transactions originated between 1995 and 2005 and terminated in December 2011 and January 2012, which the court's investigative office argues were unfairly weighted in the bank's favour.
Prosecutor Andrea Lupi, who is based in Rome, was speaking to parliament about the case, in which the audit court has asked for damages of 4.1 billion euros ($4.8 billion).
Morgan Stanley has said the claim is groundless.
Italy's Treasury used derivatives to insure its public debt - the second-highest in the euro zone relative to economic output - against rising interest rates after the 2008 financial crisis. ($1 = 0.8511 euros)
(Reporting by Giuseppe Fonte, writing by Isla Binnie) ((isla.binnie@thomsonreuters.com; +39 06 8522 4392; Reuters Messaging: isla.binnie.thomsonreuters.com@reuters.net))
The case relates to transactions originated between 1995 and 2005 and terminated in December 2011 and January 2012, which the court's investigative office argues were unfairly weighted in the bank's favour.
Prosecutor Andrea Lupi, who is based in Rome, was speaking to parliament about the case, in which the audit court has asked for damages of 4.1 billion euros ($4.8 billion).
Morgan Stanley has said the claim is groundless.
Italy's Treasury used derivatives to insure its public debt - the second-highest in the euro zone relative to economic output - against rising interest rates after the 2008 financial crisis. ($1 = 0.8511 euros)
(Reporting by Giuseppe Fonte, writing by Isla Binnie) ((isla.binnie@thomsonreuters.com; +39 06 8522 4392; Reuters Messaging: isla.binnie.thomsonreuters.com@reuters.net))
