Jun 09

Deutsche Bank Offices Raided By Authorities (ZeroHedge, June 9, 2015):

Just two days after Deutsche Bank co-CEOs Anshu Jain and Jürgen Fitschen announced their resignations, the bank’s offices in Germany, France, and the UK have been searched by authorities.


Deutsche says the searches are related to “security deals by clients” and apparently do not involve allegations of wrogndoing by the employees.

From Reuters:

Deutsche Bank confirmed its offices in Frankfurt had been searched on Tuesday and said investigators were looking for evidence related to client transactions, with no Deutsche Bank employees accused of wrong-doing.

A spokesman for Germany’s largest lender said the raid had been conducted on behalf of prosecutors in the German city of Wiesbaden, who were seeking evidence of securities transactions by the bank’s clients.

Statement from the bank:

Today the offices of Deutsche Bank in Frankfurt are being searched by the Public Prosecutor’s Office. The search relates to an investigation into securities transactions by clients. Employees of Deutsche Bank are not accused of any wrongdoing.

From Spiegel (via Google translate):

The specific allegations, the Attorney General’s Office Frankfurt declined to comment first. Introduce “in an ongoing process procedural coercion” by a judiciary spokesman said on Tuesday in Frankfurt.

To subject and scope of the investigation, the authority could not say anything because “operational phase” nor walk. However, the spokesman said no one associated with the procedure for VAT fraud in the trading of pollution rights (CO2 allowances).

According to a German bank spokesman, the raid directed against shady business of individual customers. “I can confirm that there is on behalf of the prosecutor’s office in Wiesbaden today searches offices of Deutsche Bank in Frankfurt,” the spokesman said. “The search aims to ensure evidence in connection with investigations against customers with respect to certain securities transactions. There are no employees of the bank accused.” More details – about the shops the customer – did not want to call the speaker.

*  *  *

Over the past several years, Deutsche Bank has paid out some $9 billion in connection with legacy litigation and may settle with the DoJ in the coming months over the bank’s role in selling shoddy MBS in the pre-crisis years. Here’s more on the bank’s various legal troubles.

From DB annual report:

We are currently the subject of regulatory and criminal industry-wide investigations relating to interbank offered rates, as well as civil actions. Due to a number of uncertainties, including those related to the high profile of the matters and other banks’ settlement negotiations, the eventual outcome of these matters is unpredictable, and may materially and adversely affect our results of operations, financial condition and reputation.

A number of regulatory and law enforcement agencies globally are currently investigating us in connection with misconduct relating to manipulation of foreign exchange rates. The extent of our financial exposure to these matters could be material, and our reputation may suffer material harm as a result.

A number of regulatory authorities are currently investigating or seeking information from us in connection with transactions with Monte dei Paschi di Siena. The extent of our financial exposure to these matters could be material, and our reputation may be harmed.

Regulatory and law enforcement agencies in the United States are investigating whether our historical processing of certain U.S. dollar payment orders for parties from countries subject to U.S. embargo laws complied with U.S. federal and state laws.

We have been subject to contractual claims, litigation and governmental investigations in respect of our U.S. residential mortgage loan business that may materially and adversely affect our results of operations, financial condition or reputation.

Tags: , , ,

Leave a Reply