Jain canceled an interview on the allegations before the finance committee and sent his board colleague Stephen Leitner.
Much more important is that the executive floor does not take responsibility for the scandals: Anshu Jain goes underground – and Jürgen Fitschen apparently suffers from the same perception disorder as ex-President Wulff. Jürgen Fitschen really did himself a disservice with this call. Ever since it became known that the co-head of Deutsche Bank had intervened with Hesse’s Prime Minister Volker Bouffier to complain about the fatal external effects of the raid, politicians from all parties have showered the banker with criticism. Jürgen Fitschen has apologized publicly and personally to Bouffier.
In addition, the bank boss, who is considered the embodiment of the honorable banker in the financial world, feels that he is being treated unfairly by the public prosecutor’s office, which is now investigating him because of the dirty dealings of some of his traders with tax fraudsters. In the CO2 fraud scandal, Fitschen is really more of a chance victim because it was he who signed the bank’s controversial VAT return, but Fitschen can hardly complain: with the investigation against him comes the question of responsibility for the dark past of Deutsche Bank where it belongs – on the executive floor. Nobody wants to face her there so far. Years of manipulation of Libor interest rates? No evidence of current or past management involvement, says the bank.
The flood of lawsuits from investors who feel cheated on bad securities that the bank sold as safe investments before the 2007 crash? It is regrettable that individual employees have obviously lost their compass when trying to achieve something, says Fitschen. Working with a ring of fraudsters in emissions trading?
Unlike the public prosecutor’s office, they take the view that the VAT return was corrected on time. The bank routinely pulls out of the affair by pointing out that it acted legally correct. Like a prayer wheel, she repeated the defense that the leadership did not know anything and therefore did not have to draw any personal conclusions. Firstly, the higher the rank of those involved, the less and less credible it is: According to media reports, a manager in London is said to have boosted business with the CO2 fraudsters for money. And it was the executive suite that specifically pushed the US junk mortgage business before the crisis. Second, the bank narrowed its view to the purely legal question of the many questionable transactions: Who is legally responsible?
Deutsche Bank is said to have cheated on its customers, done business with criminals and lied to supervisors. The real question is: who is responsible? The bank has no answer to this question.
It is obvious: Dirty business with tax evaders, manipulated interest rates, windy sales of securitized real estate loans: For years, all these derailments in investment banking took place under the responsibility of Anshu Jain.my biology essay services Today he is sitting in the bank’s executive chair with Jürgen Fitschen, but what is even more difficult than this culture of irresponsibility is the state of mind that apparently prevails in the executive suite: with his call to Bouffier, bank manager Fitschen gave the fatal impression that the bank was not all Wants to take responsibility for their past, but simply has no awareness of wrongdoing, because in Fitschen’s logic it was not the actual misconduct of his employees, but the visit by armed investigators to the twin towers that was fatal for the bank’s external image – so he picked up the phone. It’s the same loss of reality that ex-Federal President Christian Wulff suffered from: Yes, we made mistakes. But still others are to blame. Fitschen has thereby damaged his credibility – and the public’s trust that he can represent the cultural change in Germany’s largest financial institution. However, since Wulff’s resignation at the latest, the management of Deutsche Bank should also know: It is not the scandal that matters, but rather the perception that remains of it.
Wulff had to resign not because of the affair about his home loan, but because of his handling of the scandal, which exposed the arrogance he showed citizens, investigators and the media. That can only be a warning for the management floor of Deutsche Bank. Source: ntv.de “Profit warning, earnings slump: Deutsche Bank shocks investors. (Photo: picture alliance / dpa) Deutsche Bank shocks with a profit warning. Depreciation and provisions in Billions are the reason.
The dividend for 2015 is to be tipped. The new co-head of Deutsche Bank, John Cryan, takes tough action for the first time and sends a painful sign: Due to gigantic write-offs, the institute announced a record loss of 6.2 billion euros after taxes for the third quarter at. Even at the height of the financial crisis in 2008, the bank had not posted such a large deficit. The shareholders will also feel this.
The group announced that it would reduce the dividend or cancel it entirely. That would also be a novelty in the recent history of the institute. With the write-downs, Cryan is preparing the realignment of the bank, which he plans to present at the end of the month. The group is now writing off around 5.8 billion euros on goodwill in private customer business and in investment banking alone.
In these areas, Cryan wants to make major changes and save, and Deutsche Bank has also reduced the value of its subsidiary Postbank, which it intends to divest in the coming year. The largest German financial institution will write off a further 600 million euros on its almost 20 percent stake in the Chinese bank Hua Xia, which is now also to be sold. In addition, there are again provisions for the bank’s numerous legal disputes. They will amount to around 1.2 billion euros, but this number could increase until the bank closes its books for the past quarter. The institute wants the final figures on 29.
The stock exchange reacted with uncertainty: In after-hours trading, the price of Deutsche Bank shares fell by 6 percent. The paper of the competitor Commerzbank sagged by 2 percent. Despite the big loss, the core capital ratio should remain at around eleven percent.
The reason is that the impairments do not have a major impact on the equity capital accepted by the bank regulators. Without the value adjustments on the assets, the after-tax loss would be 400 million euros, according to the bank. In the first nine months of this year combined, the bank estimates that the net loss will amount to 4.8 billion euros. In a few weeks, Cryan plans to present its strategy for Deutsche Bank. Hard cuts are expected, as the institute recently lost a lot of ground in international competition, especially with the US competition.
The Briton has already announced that the institute will have to radically reduce its “unacceptably” high costs. Most recently, it was said in financial circles that Cryan wanted to reduce the number of employees from around 98,600 (as of the end of June) by almost a quarter to around 75,000. The former chief financial officer of the Swiss bank UBS also wants to start in investment banking, his hapless predecessor Anshu Jain rather spared. In addition, Cryan has already castigated the complex processes at the bank and announced that they will be significantly simplified and automated.
The expectations of Cryan are huge. While Jain was still in office, the bank decided in April to part with Postbank and to close around a third of the 700 Deutsche Bank branches. Cryan wants to hold on to this, as he announced shortly after taking office. As a member of the Supervisory Board, he helped to decide on these decisions, but many considered the bank’s announcements in April to be too vague and lack of concrete details. The management was punished for this on the stock exchange.
As a result, Jain had to take off his hat. The second co-boss, Jürgen Fitschen, is allowed to run the bank together with Cryan until the annual general meeting in May 2016, before the Briton alone takes over the helm. Source: ntv.de, bad / DJ “The public prosecutor’s office is investigating the Deutsche Bank boss Jürgen Fitschen. (Photo: picture alliance / dpa) The judiciary is targeting Deutsche Bank boss Fitschen because of tax fraud. The bank is now catching up with its past where it should have been looking for those responsible – in the executive suite Responsibility not fitschen, but someone else.
When 500 detectives, tax investigators and public prosecutors marched into the Deutsche Bank headquarters in Frankfurt on Wednesday, it was not only a decisive experience for some bankers. Five Deutsche Bank employees have been in custody since then. The Frankfurt Public Prosecutor’s Office is investigating serious tax evasion, money laundering and attempted thwarting of criminal offenses in emissions trading around 25. Armed police officers taking away Deutsche Bank employees – the difference between the cultural change announced by the new management duo Jürgen Fitschen and Anshu Jain and the reality in Germany’s largest financial institution has never been more visible. The public prosecutor’s office is now also investigating co-boss Fitschen and CFO Stefan Krause.
The investigators’ visit could hardly have been more symbolic: In the elevators of the headquarters, the judicial officers worked their way up to the highest levels of the Frankfurt twin towers. Deutsche Bank’s dark past is slowly reaching the top floor, specifically about fraud in the trading of CO2 certificates. At the end of 2011, the Frankfurt Regional Court sentenced six men to prison terms of between three and eight years for fraud in emissions trading.
EU companies have had to buy these pollution rights since 2005 in order to operate their factories. The men organized an artificial cycle with the papers. The men bought the certificates abroad, where no sales tax was due on the trade. They resold the pollution rights via a thicket of accounts and companies. The fraudsters demanded back the sales tax that had become due from the German tax authorities – although in truth they had never paid it. With the carousel deals, the men defrauded the tax authorities by 230 million euros, according to the court.
The investigators estimate the total damage to be 800 million euros, and further investigations are ongoing against a total of 170 dealers. The backers are in Great Britain and Dubai. Deutsche Bank is apparently more involved in the fraudulent ring than expected – and has made a lot of money from it.
As early as 2010, the investigators searched the Frankfurt headquarters in a major raid. Two Deutsche Bank employees refused to testify during the trial, but the defendants were all the more talkative: Business only really got going after they contacted Deutsche Bank, said one of the men. Because the Frankfurt money house was the bulk buyer of the certificates: Because the dealers saved the sales tax through the fraud, they were able to offer the emission rights much cheaper than the market. Deutsche Bank got into the business in order to cash in trading profits with the cheap certificates. The bankers – so the investigators suspect – first set up the system. Investigators are now expanding their investigations against the bank, because there is suspicion that they were trying to cover up their involvement: Bank employees could withhold evidence from the investigating authorities and suspected money laundering reports could not Deutsche Bank co-boss Fitschen is just a chance victim in the scandal: he signed the controversial tax return from 2009, with which the bank claimed tax refunds of 310 million on the fraudulent transactions were based.
The bank set up a special department for the business. And that was the responsibility of Anshu Jain, who has headed Deutsche Bank together with Jürgen Fitschen since June. The scandal is just another episode in the dark past that is catching up with the bank more and more, and for which Jain is primarily responsible. For years, Jain from London directed the investment banking of the money house.
The list of questionable deals is almost endless: Libor scandal: Traders from Deutsche Bank and other institutions are said to have manipulated the Libor interest rate, on which global financial transactions with a volume of 500 trillion euros are based, in their favor between 2005 and 2009 in London. The British bank Barclays had to pay a fine of almost half a billion dollars. Deutsche Bank has also already admitted that some of its dealers are involved. However, after an internal investigation, the bank rules out the involvement of current or previous management.
Jain canceled an interview on the allegations before the finance committee and sent his board colleague Stephen Leitner. The responsible dealers acted in his area of responsibility for years. US junk mortgages: Countless insurance companies, mortgage banks and financial institutions are suing Deutsche Bank because they feel cheated with complex mortgage papers, which the bank sold as safe investments before the crisis, but then in value lost. The plaintiffs also include the German BayernLB, IKB and a fund that belonged to the former SachsenLB, which has since been absorbed by LBBW.
In May, Deutsche Bank was able to buy itself out of a lawsuit filed by the US Department of Justice over these deals for $ 202 million. Deutsche Bank has already paid back $ 1.3 billion to investors. The dealers under the aegis of Anshu Jain were responsible for the sale of the securitized securities. Interest rate swaps: Before the financial crisis, the bank sold high-risk interest rate bets to dozen medium-sized companies and municipalities in Germany for years, which later turned out to be a financial disaster for cities and companies.
In a sensational judgment, the German Federal Court of Justice sentenced Deutsche Bank to € 500,000 in damages in one case in 2011. Since then, the bank has been concluding more and more out-of-court settlements in order to avoid further embarrassing convictions, but responsibility for all of these deals lies with the man who headed the bank at the time and who so ruthlessly geared it towards investment banking. He should actually have signed the controversial sales tax return, because of which Jürgen Fitschen is now being investigated, but was allegedly not in the house on the day in question.