Bank of Italy chief finally calls it quits
THE governor of the Bank of Italy, Antonio Fazio, has resigned after a scandal that has rocked Rome’s financial community.
Fazio, 69, under investigation for suspected abuse of office and insider trading, succumbed to pressures to quit after the arrest of banker Gianpiero Fiorani last week, with whom it was alleged he had a close working relationship.
The governor, who had vast powers over the financial sector in Italy in his role as central bank governor, had been at the head of the Bank since 1993 and steered the country into the single European currency.
The scandal engulfing Fazio centred around allegations that he abused his powers in takeover bids. Analysts feared it could undermine the credibility of the central bank and even of the single currency itself.
Sarah Hewin, senior economist at American Express, said: ‘The deadlock in recent weeks with Fazio was not helpful to Italy or the euro.’
The main accusation against Fazio is that he favoured a bid by Banca Popolare Italiana – led by Fiorani – to buy another Italian bank, Antonveneta, over an offer from Holland’s ABN Amro.
According to leaked details of conversations, when Fazio said he had signed the papers which would allow BPI to acquire Antonveneta, Fiorani’s reply was: ‘ Tonino, I’m overwhelmed, I have goose bumps, thank you, thank you…I would give you a kiss right now on the forehead if I could.’
Fiorani is also alleged to have sent gifts to Fazio’s family including jewellery, champagne and volumes by medieval theologian St Thomas Aquinas. Fazio denies any wrongdoing.
Economists said his resignation – on the eve of a cabinet meeting to discuss laws that could have forced him out – was unlikely to affect votes on interest rates at the European Central Bank.