Prosecutor seeks jail terms in Italy derivatives case MILAN (Reuters) - A prosecutor on Wednesday called for bankers to be jailed and lenders to be fined tens of millions of euros in a high-profile fraud case revolving around a derivatives deal with the city of Milan. Depfa Bank, Deutsche Bank, JPMorgan and UBS were ordered to stand trial in 2010 in what is seen as a test case for Italy, where hundreds of local governments signed up to opaque derivatives deals that subsequently turned sour. Milan prosecutor Alfredo Robledo told a court hearing that nine bank officials should be jailed for up to 12 months. Thirteen people, including a city employee and a consultant, are on trial. He also called for each of the banks to be fined 1.5 million euros ($1.84 million) and for them to pay back a total of 72 million euros. All four banks have denied the fraud charges which involve a swap contract signed by Milan when it issued a 1.68 billion euro, 30-year bond in 2005. The kind of deal involved was banned in 2009. "What emerged from court does not support the prosecutor's requests against UBS or its employees who are on trial," Swiss bank UBS said in a statement. We will firmly oppose the prosecutor's conclusions in our final reply in the autumn and we will prove there are no legitimate basis to condemn or fine UBS or any of its current and former employees who are being charged. Deutsche Bank "confirms its full confidence in the professionalism and the integrity of its employees." JPMorgan said it is confident that the court will reach the right verdict. The verdict is expected by the end of the year. Reporting by Manuela d'Alessandro and Giulio Piovaccari; Editing by David Cowell and Mike Nesbit