Opposition parties have called on Antonio Fazio to resign

Governor Antonio Fazio was reported to have requested a probe into two bank officials opposed to Banca Popolare Italiana's bid for Banca Antonveneta.

Mr Fazio authorised the bid, which came as Dutch rival ABN Amro was attempting to take over Banca Antonveneta. He faces criticism for allegedly trying to keep the bank in Italian hands.

Scandal

The Bank of Italy moved to deny the validity of the report in the Italian daily Corriere Della Sera.

It said the report on the events of last month was "completely devoid of any foundation".

The central bank has come under fire for allowing Popolare Italiana to raise its stake in Antonveneta to nearly 30%, while delaying similar attempts by ABN Amro.

Mr Fazio has indefinite tenure at the Bank of Italy, and is believed to be determined to stay in his job.

But pressure from the media and politicians has been building for him to quit.

Opposition parties, economists and employers have all called for his resignation.