Head of Italy's central bank resigns

ROME, Dec. 19 (UPI) -- The head of Italy's central bank, besieged for months by international pressure to resign, gave in Monday and stepped aside amid a gathering legal storm.

Antonio Fazio, recently was targeted in an Italian criminal investigation for his possible though unsuccessful involvement in an effort to stop a Dutch bank from buying an Italian financial house.

Fazio has strenuously denied the accusations and repeatedly said he behaved properly when deciding to recommend Banca Popolare Italiana over Dutch rival ABN Amro NV.

Fazio's surprise departure comes as Giulio Tremonti, Italy's finance minister, gathered broad bipartisan support over the weekend for legislation that would have forced Fazio out of office.

Meanwhile, Gianpiero Fiorani, a top banker and close friend of Fazio arrested last week on charges of insider trading and embezzlement, cooperated for several hours Saturday with investigators looking into the ABN Amro deal.

Tremonti consulted Prime Minister Silvio Berlusconi and other members of the government and opposition, and will present proposals to the cabinet tomorrow, the Financial Times said.