A document seen by Reuters showed that Italian prosecutors are investigating JPMorgan & Chase Co, a US investment bank, in relation to the acquisition of Monte dei Paschi of a rival firm. The prosecutor's document revealed that one of the former's employees obstructed Italian regulators from obtaining a hybrid financial instrument worth EUR 1 billion or USD 1.3 billion. The instrument was said to be used to partially fund the purchase of Antonveneta by Monte dei Paschi. The Italian bank is under scrutiny in Italy for manipulation and misleading the market with false statements.
Italian prosecutors accused the JP Morgan employee of failing to inform the Bank of Italy of the deal, which they say is in violation of its requirements over the hybrid instrument. In an emailed statement to Reuters, JPMorgan denied that their employee committed a wrong. "We believe that JP Morgan and its employees acted correctly at all times," the company stated. JPMorgan also said it would defend itself against the charge.
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