The headquarters of the largest German financial institution was searched twice within a few weeks.
(Photo: dpa)
Frankfurt Deutsche Bank is again in trouble with the law enforcement authorities: Officials from the public prosecutor’s office launched raids in the twin towers of Deutsche Bank and in the neighboring building of the fund subsidiary DWS in the morning. According to its own statements, the authority is investigating the initial suspicion of capital investment fraud.
Specifically, it is about the accusation of so-called greenwashing against DWS. The listed asset manager, in which Deutsche Bank holds a majority, is said to have systematically exaggerated its commitment to sustainability and green investments. DWS has been confronted with the allegations since its former sustainability officer Desiree Fixler went public with it in August 2021. Official investigations in the USA and Germany were the result.
A spokeswoman for the Frankfurt public prosecutor’s office told the Handelsblatt that around 50 officials from the authority, the financial supervisory authority Bafin and the Federal Criminal Police Office were involved in the raid. “The investigations have been running since the beginning of the year and are still aimed at unknown persons,” explained the spokeswoman.
A spokesman for the fund subsidiary confirmed the searches and said: “DWS has been cooperating fully with supervisory authorities and regulators on this issue for over six months. Our company statement of August 26, 2021 remains unchanged.” In it, DWS emphasized that it still stands by the statements on sustainability in its annual reports and rejects the allegations made by former employee Fixler.
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Deutsche Bank declined to comment on the searches beyond the DWS statement. After the report, the shares of Deutsche Bank and DWS initially fell significantly by more than four percent, but recovered at least partially by midday.
Setback for DWS boss Asoka Wöhrmann
The searches are a setback for DWS boss Asoka Wöhrmann. The manager is not only under pressure because of the greenwashing allegations. The bank has also been investigating for months whether and to what extent Wöhrmann used private e-mail accounts for business messages, which would violate the bank’s internal rules. According to information from financial circles, these investigations are still not complete.
For Deutsche Bank boss Christian Sewing, the raid again raises a regulatory and legal issue that overshadows the bank’s successful turnaround. Most recently, Deutsche Bank had trouble with the law enforcement authorities at the end of April. At that time, investigators from the public prosecutor’s office, the Federal Criminal Police Office and Bafin officials searched the money house on suspicion of deficiencies in the fight against money laundering.
Background to the action: business affairs of former Syrian Vice President Rifaat al-Assad. According to financial circles, he was not a customer of Deutsche Bank. But as part of its correspondent banking business, the money house is said to have been involved in payments from the Assad clan.
More: The US Securities and Exchange Commission proposes new rules for sustainable investments