Further banking scandal hits Hypo-Alpe-Adria

Further banking scandal hits Hypo-Alpe-Adria
Photo: APA (Archiv/Gindl)
In the on-going multi-billion euro scandal, the bad news keeps coming, with a new report that tax police in Udine, Italy have just laid charges for fraud against seven former managers of the troubled Austrian bank's Italian subsidiary.

An investigation which has been running since 2013 of seven senior managers of the Italian subsidiary of Austrian failed bank Hypo-Alpe-Adria has now revealed that they were collecting illegal interest at a rate of €88 million over 54,000 leases since 2004.

In recent years, customers had been complaining about the nature of the interest rate calculations for the lease agreements, which were supported by investigation of a local TV channel.  

In 2013, tax inspectors conducted a search of the headquarters of the Hypo-Alpe-Adria Italia bank in the northern Italian city of Udine.  The seven managers now face trial for fraud.

The troubled Austrian bank has now cost tax payers €19 billion.

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