GERMANY/FILE: Munich prosecutors are investigating Deutsche Bank co-CEO Juergen Fitschen, with the probe adding to Deutsche's legal woes as one Frankfurt trader remarks that there is hardly a scandal without Deutsche involved

Record ID: 564726

  • Title: GERMANY/FILE: Munich prosecutors are investigating Deutsche Bank co-CEO Juergen Fitschen, with the probe adding to Deutsche's legal woes as one Frankfurt trader remarks that there is hardly a scandal without Deutsche involved
  • Date: 5th November 2013
  • Summary: FRANKFURT, GERMANY (FILE - JANUARY 31, 2013) (REUTERS) VARIOUS OF DEUTSCHE BANK CO-CEOs JUERGEN FITSCHEN (ON LEFT) AND ANSHU JAIN
  • Embargoed: 20th November 2013 12:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: Crime / Law Enforcement,Finance
  • Reuters ID: LVA3TCJY8DR60QB92S6N2C9HCJ3D
  • Story Text: German prosecutors named Deutsche Bank Co-Chief Executive Juergen Fitschen as a suspect on Tuesday (November 05) in a dispute over the collapse of the Kirch media empire, adding to the bank's growing list of legal problems.
    Deutsche Bank said it was sure that Fitschen, 65, would be cleared after prosecutors in Munich said they were investigating whether he gave misleading evidence in a decade-old civil suit brought by the heirs of late media mogul Leo Kirch. They accused the bank of undermining the business.
    Germany's flagship lender is already burdened by several judicial and regulatory inquiries, including a probe into whether its traders helped rig Libor reference interest rates.
    Deutsche Bank booked 1.2 billion euros in legal costs in the third quarter of 2013 alone, wiping out profit for that period and taking total legal provisions to 4.1 billion euros.
    The bank told investors then to brace for the possibility of costly settlements ahead, saying last week: "We expect the litigation environment to continue to be challenging."
    As well as the costs, investors worry that the bank's management is being distracted by dealing with these issues.
    Fitschen is also among 25 employees being investigated on suspicion of tax evasion, money laundering and obstruction of justice over trading in carbon emission permits.
    Unlike four other European banks, Deutsche Bank has yet to reach a settlement with regulators over allegations of Libor rigging, though its trading operations are being investigated. It was one of nine banks sued by U.S. mortgage company Fannie Mae on Friday for a total of more than $800 million. The government-controlled group says Libor scams cost it money.
    Leo Kirch had claimed that, in 2002, then Deutsche chief executive Rolf Breuer triggered his German media group's downfall by questioning its creditworthiness in a television interview. The bank and its officers denied that.
    The legal battle that ensued has seen prosecutors search Deutsche Bank offices and has dragged through the courts for a decade.
    Last year, a Munich judge said Kirch had suffered damages of between 120 million and 1.5 billion euros.
    A final settlement amount in damages has yet to be determined.
    In Frankfurt, trader Fidel Peter Helmer of Hauck & Aufhaeuser bank said "unfortunately, there repeatedly has been bad news on Deutsche Bank."

    "There is hardly a scandal where Deutsche Bank is not involved and this is another piece of information which for sure will have negative consequences on the shares."
    Shortly after noon (1100 GMT), Deutsche Bank shares were down 1.74 percent at 34.40 euros.
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