Deutsche Bank Can't Stop, Won't Stop Paying Paying Legal Fees For Fraud

If it's a day ending in 'y,' the German bank is forking over money related to an employee's elastic view of the law.
Author:
Publish date:

Yesterday's rate rigging is today's tax evasion vis-à-vis carbon-emissions trades. What will tomorrow's multi-million or billion dollar fine cover? Stay tuned.

The bank paid back 220 million euros ($245 million) of tax refunds that were uncovered during the investigation, according to the prosecutor’s statement Thursday...The case is part of a seemingly never ending litany of legal headaches faced by the bank, including probes of currency manipulation and a Munich fraud trial where Fitschen and four former chief executive officers are defendants. Deutsche Bank’s bill for fines and legal settlements surpassed 11 billion euros in the second quarter, according to calculations by Bloomberg. The company said last month that the cost of litigation will “remain a burden in the coming quarters.”

Deutsche Bank Employees Said to Be Charged in Carbon Tax Probe [Bloomberg]

Related

News

Layoffs Watch '12: Deutsche Bank

The Germans thought about it and decided yes, layoffs sound like a great idea. Deutsche Bank said it will eliminate 1,900 jobs, including 1,500 at the investment bank, as part of an effort to save 3 billion euros ($3.68 billion). Deutsche Bank, based in Frankfurt, forecast “substantial costs” to achieve the savings without giving a figure in a statement to the stock exchange today. The job reductions are part of a strategy review Anshu Jain and Juergen Fitschen, Deutsche Bank’s new co-chief executive officers, are conducting as the lender grapples with declining revenue from the investment bank, which reported a 63 percent decline in second-quarter earnings today...“The time for vague promises of cultural change in our industry is long gone,” Jain said on a conference call with analysts and reporters. Deutsche Bank’s leaders are “totally determined to act quickly and decisively.” Deutsche Bank To Cut 1,900 Jobs In Bid To Save EU3 Billion [Bloomberg]

News

Clawbacks Watch '12: Deutsche Bank

Those shares DB awarded you to make up for the ones you were leaving with your old employer? They're going to need those back. Deutsche Bank has become the first global bank to introduce rules allowing it to strip staff of bonuses they earned at previous employers in the latest crackdown on pay. The largest European lender by assets has significantly tightened its bonus rules this year, enabling it to take back unvested shares that newly hired senior staff received in exchange for stock earned at another bank. The German banks’ stricter bonus rules, which came into force in January, apply to all new senior hires considered to be involved in the bank’s risk-taking, a spokesman said. These more than 1,300 “regulated employees“ include managing directors in the corporate and investment bank and members of the management committees of all other units. One recruitment expert warned the rule could make it harder for Deutsche Bank to attract senior talent as the potential job candidates might not be willing to put at risk stock earned at a previous bank. Deutsche Bank Turns Screws On Bonuses [FT]