The Bundesanstalt für Finanzdienstleistungsaufsicht sounds terrifying. Generally speaking, it’s not, unless you are a short-seller or journalist with the temerity to uncover potential wrongdoing at a German company. If you’re one of those German companies, however, it’s usually a cuddly teddy bear. Much as it would like to, however—and certainly much as Allianz CEO Oliver Bäte would like it to—BaFin simply can’t ignore the growing number of U.S. regulatory probes in the same way it ignored the growing stack of client lawsuits over the company’s collapsed Structured Alpha hedge funds. And so, with regret, and belatedly as ever, the Germans are opening a probe of their own.
The investigation by Germany's financial regulator, BaFin, is across multiple departments of the institution, several sources said, speaking on condition of anonymity as the investigation is ongoing.
BaFin officials are examining the extent to which Allianz executives outside the fund division had knowledge of, or were involved in, events leading up to the funds racking up billions of dollars of losses, the people said….
The sources said the German investigation was currently in a fact-finding phase and involved multiple people, but had picked up pace since Allianz announced the DOJ probe on Aug. 1.
What an amusing coincidence.
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