Beleaguered Italian lender, Monte dei Paschi (BMDPF) , hit back at media reports of previous board members being included in an investigation over accusations of false accounting.
The Tuscan bank dismissed the investigation as a routine response from authorities, in light of complaints received by small private shareholders, and insisted that its actions were correct at all times.
It was reported on Thursday that Italian prosecutors have included former CEO Fabrizio Viola and former Chairman Alessandro Profumo as subjects in their investigation of alleged false accounting and market manipulation.
The investigation concerns two derivatives trades that the bank entered into which are said to have been designed for it to hide losses on its balance sheet.
The investigations follow complaints from private shareholders in Italy who have sought various forms of action against the former executives for the losses heaped onto investors under their leadership.
But this is just the latest in a long line of investigations dating back to the ill-fated acquisition of Banca Antonveneta in 2007.
Monte dei Paschi insisted that it is innocent of any wrongdoing in a statement released on Thursday evening.
"The bank therefore strongly reaffirms the full correctness of its actions, and trusts...the ongoing investigations will lead to a rapid calming and clarification of the situation." the statement said.
Monte dei Paschi shares were down just more than 1% in the early hours of the European session, after having fallen to reach a new all time low of €0.2329. The stock is down more than 80% so far into 2016.
The beleaguered lender has been forced to seek a private sector bailout in recent months, in order to boost its regulatory capital buffer, following years that have seen a mounting pile of bad loans wreak havoc upon its balance sheet.
Under the terms of the agreement, the bank will dispose of its entire bad loan portfolio to a specialist investment vehicle, for which it will receive close to €10 billion ($11.3 billion). Subject to the satisfactory disposal, it will be able to make a €5 billion cash call - mostly to institutional investors.
The bank was one of many subjected to the recent round of European Banking Authority stress tests. Although there was no pass or fail threshold, the outcome of the tests for Monte dei Paschi made it difficult for anybody to avoid the conclusion that it had achieved the impossible.
Under the hypothetical economic stress scenario ran by the EBA, Monte dei Paschi imploded on itself after its capital reserves were proven insufficient for dealing with a financial or economic shock of the magnitude that it must be able to withstand.