JP Morgan, UBS, and Deutsche Bank To Go On Trial For Alleged Fraudulent Sale of Derivatives

UBS, Deutsche Bank, JPMorgan Chase and Depfa Bank will be tried in Milan, Italy, because of the alleged fraudulent sale of derivatives amounting to €1.7 billion (U.S. $ 2.3 billion), stated Italian prosecutor Alfredo Robledo.

Banks are accused of having obtained 100 million in illicit profits through irregularities in the sale of derivatives linked to an issue of bonds by the municipality of Milan, conducted between 2005 and 2007. "It's the first time in the world that banks will be judged because of the sale of derivatives to municipalities," said Robledo.

The hearings will begin on May 16. In April 2009, more than € 476 million in assets were confiscated by the Italian tax officials as part of an investigation that lasted more than two years.

In separate statements, the banks have denied any wrongdoing and said they would defend themselves.

With news from Agencia Estado.