GENEVA (AFX) - Swiss financial regulators said they envisage closing the Bipielle bank, a subsidiary of Banca Popolare Italiana, because of its alleged involvement in BPI's failed attempt to take over Banca Antonveneta SpA.
The Federal Banking Commission 'has called for the resignation of four of the five board members' of the Bipielle bank in the southern canton of Ticino, a spokeswoman said Sunday following revelations on local television.
Bipielle is accused of a failure of due diligence in extending credit to BPI, which in turn is accused of taking part in illicit attempts to thwart Dutch bank ABN Amro from taking over Banca Antoveneta..
The commission has called on Bipielle to regularise the management of its business by October or cut the BPI stake to below 10 pct.
'Otherwise it will find itself compelled to close the establishment,' the spokeswoman said.
She said that the commission would only accept that the chairman of the board could stay in office as he had joined after the controversy that engulfed BPI. newsdesk@afxnews.com afp/hjp COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited