Identifier
Created
Classification
Origin
07ROME1281
2007-06-11 16:31:00
SECRET//NOFORN
Embassy Rome
Cable title:
BANK OF ITALY PUTS BANK SEPAH ROME UNDER "SPECIAL
how-toVZCZCXRO1644 OO RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHRO #1281 1621631 ZNY SSSSS ZZH O 111631Z JUN 07 FM AMEMBASSY ROME TO RUEHC/SECSTATE WASHDC IMMEDIATE 8292 RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE INFO RUCNIRA/IRAN COLLECTIVE PRIORITY RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0452 RUEHFL/AMCONSUL FLORENCE PRIORITY 2447 RUEHMIL/AMCONSUL MILAN PRIORITY 8724 RUEHNP/AMCONSUL NAPLES PRIORITY 2606 RUEHBS/USEU BRUSSELS PRIORITY 4532 RUCNDT/USMISSION USUN NEW YORK PRIORITY 0758
S E C R E T ROME 001281
SIPDIS
SIPDIS
NOFORN
STATE FOR EB/ESC/TFS, DAVID NELSON; EUR/WE, KATHLEEN
ALLEGRONE, ANDREW YOUNG; NEA/IR
TREASURY FOR U/S LEVEY
E.O. 12958: DECL: 06/11/2017
TAGS: KNNP PARM PREL EFIN KTFN ETTC ECON UN IR IT
SUBJECT: BANK OF ITALY PUTS BANK SEPAH ROME UNDER "SPECIAL
ADMINISTRATION" STATUS
REF: A. ROME 628
B. ROME 600
Classified By: Economic Minister Counselor Tom Delare
for reasons 1.4 (b) and (d).
S E C R E T ROME 001281
SIPDIS
SIPDIS
NOFORN
STATE FOR EB/ESC/TFS, DAVID NELSON; EUR/WE, KATHLEEN
ALLEGRONE, ANDREW YOUNG; NEA/IR
TREASURY FOR U/S LEVEY
E.O. 12958: DECL: 06/11/2017
TAGS: KNNP PARM PREL EFIN KTFN ETTC ECON UN IR IT
SUBJECT: BANK OF ITALY PUTS BANK SEPAH ROME UNDER "SPECIAL
ADMINISTRATION" STATUS
REF: A. ROME 628
B. ROME 600
Classified By: Economic Minister Counselor Tom Delare
for reasons 1.4 (b) and (d).
1. (S/NF) The Bank of Italy (BOI) regulator overseeing BOI
administration of Bank Sepah Rome since passage of UNSCR 1747
informed Econoff June 8 that BOI "special administration" of
the branch is now in place. The Ministry of Finance approved
BOI's request to move to a special administration of Bank
Sepah Rome after BOI's 60-day "provisional administration"
expired (ref A). The special administration period will last
60 days and can be renewed indefinitely. In practical terms,
there is no real difference between provisional and special
administration, as two BOI administrators will continue to
monitor Bank Sepah Rome's day-to-day activities.
2. (S/NF) Special administration does not require BOI to
shut down Bank Sepah Rome. However, BOI can liquidate Bank
Sepah Rome's assets at any time, as BOI has final authority
to carry out Italian banking law when a bank is in special
administration status. To do so, BOI must show
"extraordinary irregularities and losses" (ref B). BOI
officials have hinted to us that UNSCR 1747 could be
characterized as an "extraordinary irregularity."
3. (S/NF) COMMENT: Historically, BOI has used special
administration only in extreme cases -- e.g., when a bank has
come under mafia control or, in Bank Sepah's case, is in
defiance of international law. BOI officials have previously
confided to us their desire to see Bank Sepah Rome closed --
but in accordance with Italian banking law. While BOI has a
long record of independence and BOI Governor Draghi -- a
consummate professional -- has said the branch should close,
the GOI could pressure BOI to continue its special
administration indefinitely to protect Italy's trade and
investment ties with Iran. End comment.
Spogli
SIPDIS
SIPDIS
NOFORN
STATE FOR EB/ESC/TFS, DAVID NELSON; EUR/WE, KATHLEEN
ALLEGRONE, ANDREW YOUNG; NEA/IR
TREASURY FOR U/S LEVEY
E.O. 12958: DECL: 06/11/2017
TAGS: KNNP PARM PREL EFIN KTFN ETTC ECON UN IR IT
SUBJECT: BANK OF ITALY PUTS BANK SEPAH ROME UNDER "SPECIAL
ADMINISTRATION" STATUS
REF: A. ROME 628
B. ROME 600
Classified By: Economic Minister Counselor Tom Delare
for reasons 1.4 (b) and (d).
1. (S/NF) The Bank of Italy (BOI) regulator overseeing BOI
administration of Bank Sepah Rome since passage of UNSCR 1747
informed Econoff June 8 that BOI "special administration" of
the branch is now in place. The Ministry of Finance approved
BOI's request to move to a special administration of Bank
Sepah Rome after BOI's 60-day "provisional administration"
expired (ref A). The special administration period will last
60 days and can be renewed indefinitely. In practical terms,
there is no real difference between provisional and special
administration, as two BOI administrators will continue to
monitor Bank Sepah Rome's day-to-day activities.
2. (S/NF) Special administration does not require BOI to
shut down Bank Sepah Rome. However, BOI can liquidate Bank
Sepah Rome's assets at any time, as BOI has final authority
to carry out Italian banking law when a bank is in special
administration status. To do so, BOI must show
"extraordinary irregularities and losses" (ref B). BOI
officials have hinted to us that UNSCR 1747 could be
characterized as an "extraordinary irregularity."
3. (S/NF) COMMENT: Historically, BOI has used special
administration only in extreme cases -- e.g., when a bank has
come under mafia control or, in Bank Sepah's case, is in
defiance of international law. BOI officials have previously
confided to us their desire to see Bank Sepah Rome closed --
but in accordance with Italian banking law. While BOI has a
long record of independence and BOI Governor Draghi -- a
consummate professional -- has said the branch should close,
the GOI could pressure BOI to continue its special
administration indefinitely to protect Italy's trade and
investment ties with Iran. End comment.
Spogli