US authorities have deepened their involvement in the investigation of Parmalat Finanziaria and the role of US banks that helped sell the company's bonds and lent it money.
Manhattan District Attorney Mr Robert Morgenthau is collaborating in a joint inquiry between US and Italian authorities into what has become one of Europe's biggest corporate scandals, a source said.
Parmalat, the Italian food group known mostly for its boxed milk, is being dubbed Europe's Enron because of the size of the accounting scandal. It has been forced to seek protection from creditors since its new management revealed a hole of €4 billion in its accounts more than two weeks ago.
The US Securities and Exchange Commission, which filed a complaint last week alleging that Parmalat committed fraud in the United States, is working with other US authorities as it broadens its own inquiry of more than $1.5 billion of bond sales over the last seven years.