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Prison term demanded for Italy’s Generali chairman

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Prosecutors in the trial of Cesare Geronzi,  chairman of insurance giant Generali, on Wednesday demanded an eight-year  prison term for his suspected role in the 2003 collapse of food company Cirio.

Geronzi, 75, was head of Capitalia bank at the time.    Prosecutors demanded prison sentences for a total of 31 defendants in the  trial including 15 years for then Cirio owner Sergio Cragnotti, ANSA news  agency reported.

Cirio’s bankruptcy in July 2003 caused losses of more than one billion  euros (1.4 billion dollars) to private savers, five months before the country  was hit by the still more devastating Parmalat fraud scandal, with losses of  more than 14 billion euros.

Cirio began to sink in late 2002 when the company which specialises in  canned fruit and vegetables was unable to pay back a loan. After a failed bid  to restructure Cirio was liquidated at the end of July 2003.

Milan, March 2, 2011 (AFP)