Bank of America offices searched - Parmalat

Bank of America offices in Milan are being searched by investigators looking into the collapse of Italian food company Parmalat.

Bank of America managed the sale of Parmalat bonds and also structured other business for the company.

Parmalat's crisis exploded last month after Bank of America declared as false a document purporting to show a Parmalat unit had £4bn (€5.7bn) in an account with the bank.

Yesterday, former Bank of America executive Luca Sala was placed under formal investigation.

Sala joined Parmalat in June last year.

Separately, the Italian daily newspaper La Republica said today a reconstruction of Parmalat accounts over 2000-2003 shows that the group made combined losses of €1.4bn, and built up debt of €10bn.