Lyonnais in probe

PARIS (Reuters) – The Paris public prosecutor opened a criminal probe Monday into suspected fraud at Credit Lyonnais in the early 1990s, justice sources said.

The move followed a request by Finance Minister Jean Arthuis for legal action against former top managers at the state bank, which saw massive losses in the early ’90s.

Arthuis said in August he wanted to bring former bosses – he gave no names – to justice for failing to control subsidiaries during runaway expansion in the late 1980s and early 1990s.

The French bank was a major lender in that period to several Hollywood companies, including MGM/UA when it was owned by Italian financier Giancarlo Parretti.

Credit Lyonnais revealed losses of 21 billion francs ($4 billion) between 1992 and 1994 and has since been steered from one salvage plan to another, with a third rescue likely soon.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Scene News from Variety

Loading