“Sicily, Italy’s poorest region, faces increasing losses on about 860 million euros ($1.1 billion) of derivatives that are weighing on its debt as the local administration faces a liquidity crisis.
Contracts with six banks led by Bank of America Corp. (BAC), Deutsche Bank AG (DBK) andNomura Holdings Inc. (8604) have lost money for the local government since 2008 and future losses will wipe out earlier gains, Italy’s state auditor warned in a June 29 report. The regulator urged Sicily to “seek protection” against losses on the contracts.”
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