Deutsche Bank expects former board members to contribute substantial sums toward the costs of its past misconduct as Germany’s biggest lender seeks to rebuild its reputation, its chairman Paul Achleitner said.
Achleitner told shareholders at Deutsche Bank’s annual general meeting in May 2017 that its supervisory board and two committees were discussing the need for personal and collective responsibility and the bank had sought external legal advice.
“The supervisory board expects that in the coming months, there will be an arrangement which ensures that the individuals involved make a substantial financial contribution,” he said, adding that while no decision had yet been reached, discussions were at an advanced stage.
The talks are focusing on why Deutsche Bank’s own response was so slow, as well as its involvement in a series of financial scandals, Deutsche Bank sources told Reuters. Collective responsibility of the board for the bank’s actions as a whole were at the center of the talks, rather than personal failure or involvement in individual litigation cases, they added.
Achleitner did not name any individuals, but Deutsche Bank sources said the board is in talks with around ten people, including former chief executives Anshu Jain, Juergen Fitschen and Josef Ackermann. Talks are underway with other former board members including Stephan Leithner, Rainer Neske, Henry Ritchotte, Stefan Krause and current board member Stuart Lewis.
If Deutsche Bank reaches settlements with former executives, it would mark a significant step in efforts to break with a turbulent period in the bank’s 147-year history.
Deutsche Bank transformed itself into a major player on Wall Street over the past two decades, but extravagant bets and poor conduct have resulted in a litigation bill of 15 billion euros ($16.7 billion) since 2009.
The bank has settled its most painful litigation cases, including alleged manipulation of interest rates and sham equities trading in Russia, which surfaced as late as 2015.
And at the end of last year it finally settled with the US Department of Justice for mis-selling toxic mortgages, agreeing to pay $7.2 billion.
The bank tried to salvage its reputation with the publication in February of an unprecedented apology in the form of an open letter signed by its CEO John Cryan.
Deutsche Bank, which failed over the past two years to communicate its actions to the public, is now launching a social media campaign to rebuild its image.
This article may use background information and fact-checking material from Wikipedia, the free Encyclopedia. The content of this article including any attachments, hosted locally or linked, is freely available for re-use under simple legal terms via the Creative Commons Attribution-ShareAlike License (CC-BY-SA), additional terms may apply where applicable.