The scale of the scandal is only now coming to light as the investigation enters its second month and police continue to question former executives.

The collapse of Parmalat with billions of euros of losses has shaken Italy's government, investors and farmers.

It has led to emergency laws being passed and plans for wholesale reforms.

Forgery

Banks' exposure to Parmalat ABN Amro About 70m euros Bank of America $274m Barclays £45m UBS Owned about 420m euros of Parmalat bonds, but doesn't expect significant losses Unicredito About 150m euros Banca Intesa About 360m euros Banca Lombarda About 35m euros Banca Monte dei Paschi di Siena 183m euros Banca Nazionale del Lavoro 110m euros Banca Popolare di Lodi Less than 100m euros Banco Popolare di Verona e Novara About 35m euros Banca Popolari Unite About 100m euros Capitalia About 614m euros, including provisions Credem About 50m euros Source: Reuters

The crisis at Parmalat was triggered by the revelation last month that bank documents relating to assets worth 3.9bn euros (£2.7bn; $4.9bn) were false.

Nine people have been arrested so far, although no-one has been charged. Parmalat's founder, Calisto Tanzi, is currently in jail, accused of fraud.

According to local press reports on Friday, the investigation has now widened to include more lenders.

The companies under scrutiny include some of the biggest names in banking and Wall Street.

Prosecutors, meanwhile, questioned Parmalat's former chief financial officers Alberto Ferraris and Luciano Del Soldato.

Wound up

They also placed travel company Parmatours into administration.

Mr Tanzi has admitted siphoning off about 500m euros from Parmalat to finance the company which had his daughter on its board of directors.

Also on Friday, the government passed emergency measures to protect the 5,000 dairy farmers put at risk by Parmalat's collapse. The company owes about 100m euros in unpaid bills.

Under the legislation, the farmers are entitled to cheap loans and are exempt from social security payments for the next 12 months.