MILAN (AFX) – Banca Popolare Italiana has reduced its exposure to hedge funds and derivatives, investments that last year caused concern about the groups financial solidity, the daily Il Sole 24 Ore said without giving a source.
Under the management of new chief executive Divo Gronchi, who replaced Gianpiero Fiorani after his arrest in a financial scandal, the bank has cut by 60 pct its 925 mln eur investment in hedge funds and reduced to 1.45 bln from 1.96 bln its exposure to derivatives, the newspaper said.
The bank plans to erase its hedge fund investments and cut derivatives investments by another 300 mln eur, it added.
