Investors in Deutsche Bank are concerned that the criminal investigation into the suspected money laundering activities of the lender’s wealth management unit will make it harder for chief executive Christian Sewing to execute his crucial turnround agenda.
The Financial Times reports the two days of raids on Deutsche Bank’s Frankfurt headquarters on Thursday and Friday that included Mr Sewing’s office sent its share price to a new all-time low and increased the pressure on the chief executive as well as on Deutsche’s chief regulatory officer, Sylvie Matherat. Since Mr Sewing was appointed in April, Deutsche’s share price has lost 30 per cent.
Prosecutors in Frankfurt suspect that Deutsche from 2013 to 2018 helped wealth management clients to transfer dubious funds into a Deutsche Bank vehicle based in an offshore tax haven without flagging potential money laundering to law enforcement authorities. The criminal investigation was triggered by leaked documents on offshore tax havens, the so-called “Panama Papers”.
Two Deutsche Bank managing directors and further unspecific employees are in the crosshairs of the investigation. The prosecutors stress that no member of the management board has been targeted.
