The Germans are said to have asked a number of employees to clean our their desks. Read more »
Federal prosecutors in Manhattan on Monday sued Deutsche Bank, claiming that it owes the United States government about $190 million in unpaid taxes, penalties and interest. Prosecutors contend the tax liability stems from a transaction that Deutsche Bank undertook 14 years ago. The bank had acquired a company that held three million shares of Bristol-Myers Squibb. The shares appreciated in value and, federal prosecutors say, the bank came up with a “scheme to evade” paying tens of millions of dollars in capital gains taxes on the shares when they were eventually sold. But Deutsche Bank, which has large operations in the United States, contends that it reached a settlement with the I.R.S. over the same tax dispute in 2009. “It is not clear to us why we are being pursued again for the same taxes,” the bank said in a statement. It said it intended to “vigorously” fight the lawsuit. [Dealbook]
When a German judge tells you in clipped tones that you do not want her weighing in on the matter of (a) your suspension for (allegedly!) trying to manipulate interest rates or (b) your suspending said alleged manipulators without actually following any of the (probably thousands of) rules in Germany regarding such, you listen. Deutsche Bank and its suspended traders have listened. Read more »
Deutsche Bank AG , which has struggled to overcome investor concerns about its financial strength, is replacing its longtime finance chief with a Goldman Sachs Group Inc. partner, according to people familiar with the matter. Stefan Krause , who has faced criticism from investors over his financial leadership of the giant German bank, will take a newly created position within Deutsche Bank, with responsibilities including strategy, cost-cutting and other issues, the people said. His replacement, Marcus Schenck, was the finance chief of German utility E.ON AG from 2006 through 2013. He joined Goldman Sachs last year. [WSJ]
As its name indicates, Deutsche Bank is not a Swiss bank. But it does have a Swiss banking unit, for the same reason every other bank has a subsidiary in a country home to fewer people than New York City, which is the reason why said country of eight million people living on top of mountains has exactly one notable industry: banking. Historically speaking, the kind of banking that means you might not have to pay taxes.
Of course, this sort of banking has run into some troubles, recently, not least of all from Deutsche Bank’s home country. And without Angela Merkel’s willingness to throw down á la François Hollande with Barack Obama, and frankly without much risk to itself, the Frankfurters aren’t putting up a fight. Read more »
You get nichts! Read more »
The world’s biggest banks are overhauling how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation. Barclays Plc, Deutsche Bank AG, Goldman Sachs Group Inc., Royal Bank of Scotland Group Plc and UBS AG, which together account for 43 percent of foreign-exchange trading by banks, are introducing measures to make it harder for dealers to profit from confidential customer information and take advantage of clients in the largely unregulated $5.3 trillion-a-day currency market, according to people with knowledge of the changes. Banks have capped what employees can charge for exchanging currencies, limited dealers’ access to information about customer orders, banned the use of online chat rooms and pushed trades onto electronic platforms, according to the people, who asked not to be identified because they weren’t authorized to discuss their firms’ practices. [Bloomberg]