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Deutsche Bank faces more problems with the American judiciary

Deutsche Bank faces more problems with the American judiciary

It remains unclear what the consequences of the greenwashing allegations made by a former employee of Deutsche Bank’s DWS last year will be. Does the group have to pay a fine because the fund subsidiary may have provided false information in the annual report? Time will tell. But it is now clear that the US authorities are not satisfied with the way Deutsche Bank informed them. That’s what emerges from Deutsche Bank’s annual report, published on Friday. Accordingly, the US Department of Justice decided at the end of February that the bank had not only reported the allegations too late. It also violated reporting obligations as part of a settlement the bank entered into in early 2021 on another matter. Now a private supervisor, i.e. an outside law firm, will “extend his powers” in order to continue to see that things are fine in Frankfurt.

What seems like a trifle is very uncomfortable for Christian Swing. The CEO repeatedly emphasizes how much the relationship with supervisors has improved during his tenure since 2018. In January 2021, Sewing clarified more issues related to legal inheritance in the United States with a settlement of another matter, but at the same time a promiseTo promptly report potential compliance issues or serious complaints from senior management to supervisors, whether or not the bank believes they are legitimate. This sounds pretentious, but it’s very common. Deutsche Bank does business in the USA and therefore has to comply with the rules there.

The allegations made by the former head of sustainability at fund company DWS a year ago were very serious: In an email to DWS supervisory board chairman Karl von Rohr and head of sustainability at Deutsche Bank Jörg Eggendorf, the group’s group fund could be the information provided. About sustainability wrong. Apparently because she addressed these matters, she was fired a few days ago. However, the US Department reportedly only heard about the events from The Wall Street Journal I found out after the manager called the newspaper over the summer. As a result, the US authorities and the German financial regulator Baffin launched an investigation.

As the annual report also said on Friday, the Department of Justice has now expanded existing oversight by an independent auditor due to the breach. It will be about “certifying” the implementation of internal controls. In addition, the Department of Justice has “all rights reserved” to take further action in connection with the settlement. It is now also possible that “Deutsche Bank will be sued or subjected to other actions,” the DWS annual report said. Did Dar Al Mal fail to report more complaints to the Ministry of Justice? The bank declined to comment on this.

A total of 520 employees earn more than 1 million euros

The annual report not only provides insight into legal disputes, but also contains details about bankers’ salaries: As expected, the workforce will receive higher bonuses for 2021 after the bank turns profitable again. In general, Bait Al Mal pays about 2.1 billion euros, and therefore 14 percent more “variable salaries” than the previous year. Most of this was represented by the approximately 7,000 employees of the investment bank.

Millionaires are also still well represented in the bank: a total of 520 employees still receive a wage of more than 1 million euros (in the previous year it was 614), at least four of them earn more than sewing. The highest stop is between ten million and eleven million euros. In a European comparison, Frankfurt has by far the highest-earning millionaires in its ranks. The board of directors also gets more: the directors together receive about 66.5 million euros. The seamstress’ wages rose within a year from around 7.4 million euros to a good 8.8 million euros. Only some of these payments will be made later depending on the success of the business.