Milan magistrates are investigating Fazio as part of a probe into Banca Popolare Italiana's Corriere della Sera said Fazio "is being investigated by the Milan prosecutor's office for the suspected crime of insider trading".

Officials at the Bank of Italy and the Milan public prosecutor's office were unavailable for comment.

Fazio has denied any wrongdoing in his handling of the takeover and resisted calls from politicians and newspapers to resign over accusations he unfairly favoured Pop Italiana in its fight with Dutch bank ABN AMRO for control of Antonveneta.

The former chief executive of Pop Italiana, Gianpiero Fiorani, was arrested this week for suspected financial crimes including conspiracy to embezzle.

He was to be questioned on Saturday by investigating magistrates.

Fazio was wiretapped in July calling Fiorani to tell him that he had approved Pop Italiana's bid for Antonveneta.

In a separate investigation by Rome prosecutors into the battle for Antonveneta, Fazio was placed under investigation in September for abuse of office.

- Nampa - Reuters

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