Derivatives Treasure, that’s why the Supreme Court does not touch Morgan Stanley
What has the Supreme Court established on Treasury derivatives with the American bank Morgan Stanley
Although the approved information is on the one hand exciting and on the other hiding all aspects of the news, today the Supreme Court has not condemned Morgan Stanley for the Treasury derivative affair.
That is to say, the American investment bank cannot be involved in the affair that for almost 10 years has seen it engaged in Italian courts: from the civil ones to the Court of Auditors to the Supreme Court.
Reason: hypothetical tax damages for having left a derivative in 2012.
"Lack of jurisdiction", the magic word. It was recognized by the Supreme Court and, before that, two degrees of judgment by the Court of Auditors.
The prosecutor of the accounting magistracy thus recorded a clear defeat.
The other part of the sentence of the Supreme Court can be repeated, which asks to reopen the judgment against the managers of the Mef (all general managers, except one: Mario Draghi) who have operated in derivatives.
From Domenico Siniscalco to Vittorio Grilli to Vincenzo La Via, passing through Maria Cannata , former director of public debt.
For all of them, the Court of Auditors must return to express itself for damage to the tax authorities, although in two levels of judgment it has already established its "lack of jurisdiction" in joint sections.
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ANSA AGENCY OF TODAY:
The former Ministers of the Economy Vittorio Grilli and Domenico Siniscalco, and the former managers of Mef Maria Cannata, return to trial before the Court of Auditors, for the affair of the stipulation of contracts in high-risk derivative financial products with the Morgan Stanley bank, the former Ministers of the Economy Vittorio Grilli and Domenico Siniscalco, and the former managers of Mef Maria Cannata, former executive of the public debt, and the former CEO of the Treasury Vincenzo La Via. This was decided by the Supreme Court which upheld the appeal of the Pg of the Court of Auditors – which complains about bad management and a total tax damage of 3.9 billion euros – against the dismissal of the case due to lack of jurisdiction.
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EXTRACT FROM AN ARTICLE OF THE REPUBLIC:
"Without prejudice to the jurisdictional unquestionability of public debt management choices, by the government bodies in charge, through the use of derivative financial instrument contracts, – affirms the Supreme Court – it instead falls within the accounting jurisdiction, as pertaining to the scrutiny of parameters of legitimacy and not mere opportunity or convenience of administrative action, the liability action for tax damage with which the mismanagement to which the managers of the Treasury (today Mef) would be asserted as a substantial petitum given course, in practice, in the adoption of certain operating procedures and in the stipulation of specific negotiating conditions relating to particular contracts in these instruments ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/derivati-tesoro-ecco-perche-la-cassazione-non-tocca-morgan-stanley/ on Mon, 01 Feb 2021 16:28:02 +0000.