ROME, Feb 17 (Reuters) - An Italian audit court prosecutor said on Friday she is seeking total damages of 4.1 billion euros ($4.36 billion) over derivatives transactions between Italy’s Treasury and U.S. bank Morgan Stanley.
The claim relates to contracts originated between 1995 and 2005 and terminated in December 2011 and January 2012.
Donata Cabras, a prosecutor for the court in the Lazio region, argues that the transactions were too risky and speculative for a state to take on, and were not suited to reducing Italy’s hefty public debt.
“The total damages being asked for amount to 4.11 billion euros,” Cabras said at an event in Rome. She did not specify who she wanted to pay, or how the amount should be divided.
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. ($1 = 0.9398 euros) (Reporting by Giuseppe Fonte, writing by Isla Binnie)