Julius Baer has been involved in discussions with Swiss authorities in connection with a scandal relating to an Italian bank takeover, accor...

Julius Baer has been involved in discussions with Swiss authorities in connection with a scandal relating to an Italian bank takeover, according to a report by Dow Jones Newswires.

Details of the discussions remain vague but centre around Banco di Lugano, one of the three banks Julius Baer bought from UBS in September 2005, which last week had its name changed to Banca Julius Baer.

According to the report, the discussions form part of a broader probe into securities violations and other irregularities linked to Banca Popolare Italiana's failed effort to take control of Banca Antonveneta from ABN Amro.

Other reports say Italian authorities, with the help of local polices forecs, are also investigating other banks in Switzerland and Liechtenstein.

The scandal has so far led to the resignation of BPI’s board and its chief executive Gianpiero Fiorani. It was also partially behind the resignation last month of Antonio Fazio, the Governor of the Bank of Italy.

Mr Fiorani is being investigated for embezzling funds in offshore centres as well as his involvement in the Antonveneta affair.

Last month, WealthBriefing reported on the purported arrests of a number of private bankers from Lugano-based Bipielle Bank (Suisse) in connection to the Italian scandal involving Banca Popolare Italiana.

Bipielle Bank is the Swiss banking subsidiary of BPI. It is one of the most profitable private banks in Lugano with its gross profit rising 58 per cent year-on-year in the first half of 2005 to SFr9.3 million ($7.2 million).

Formerly known as Bank Adamas, the bank had 54 employees and client assets of SFr2.4 billion as of end-December 2004.