Published January 28, 2013
ROME – Italian consumer rights group Codacons said on Monday it was seeking a court order to block state aid to the troubled Monte dei Paschi bank and would seek compensation from the Bank of Italy for failures in its supervisory functions.
Codacons said last week it was launching legal action against the Bank of Italy over its supervision of a widening derivatives scandal at Monte dei Paschi, Italy's third-largest bank.
On Saturday, the Bank of Italy approved a 3.9-billion-euro package of state aid for Monte dei Paschi which will take the form of a bond that will convert into shares in the bank if it does not repay the loan.
(Reporting By James Mackenzie)