(Corrects to 1.2 from 1.3 in 1st paragraph, to 1.3 from 1.4 in headline)
ROME, Feb 17 (Reuters) - An Italian audit court prosecutor said on Friday that Treasury officials should pay around 1.2 billion euros ($1.28 billion) in damages over derivatives contracts with U.S. bank Morgan Stanley.
The claim relates to contracts originated between 1995 and 2005 and terminated in December 2011 and January 2012, which the Lazio regional court’s prosecutor says were unfairly weighted in the bank’s favour.
Deputy prosecutor Massimiliano Minerva said 70 percent of a total 4.1 billion euros in damages should be paid by the bank, and the rest by Italian Treasury officials.
He did not say which officials he wanted the payment from.
Morgan Stanley said in a securities filing last year the prosecutor had proposed it pay 2.9 billion euros to settle the transactions. A spokesman for the bank said the claim was groundless. (nL1N1AK25H)
$1 = 0.9389 euros Reporting by Giuseppe Fonte, writing by Isla Binnie