Europe breaking news and pictures

MILAN (AP) — Italian police have arrested the former head of finance at embattled bank Monte dei Paschi di Sienna for his alleged role in concealed derivative trades.

Italian news reports say police arrested Gianluca Baldassarri in northern Italy on Thursday. Authorities called him a flight risk after he sought to cash in securities valued at €1 million ($1.3 million).

MontePaschi, as the bank is commonly known, has acknowledged losses of €730 million due to three derivative trades that were not reported on balance sheets or to regulators until new management came in last year. The bank has sought €3.9 billion in state aid mostly as a cushion against Italian sovereign debt exposure, and which also includes €500 million for the trading losses.

Baldassarri is accused of obstructing regulators regarding the derivative trades.