Deutsche Bank Violated DOJ Settlement and Agrees to Extend Outside Monitor
11 Março 2022 - 02:03PM
Dow Jones News
By Patricia Kowsmann and Dave Michaels
Deutsche Bank AG agreed to extend the term of an outside
compliance monitor after U.S. Justice Department prosecutors found
the bank violated a criminal settlement by not disclosing a
misconduct complaint in its asset manager's sustainable investing
business, the bank said.
The complaint, made by a former executive, alleged that Deutsche
Bank's majority-owned asset manager, DWS Group, overstated how much
it used environmental, social and governance criteria to manage
investments it oversees. Instead of hearing about it from the bank,
U.S. authorities learned of the issue in an August Wall Street
Journal article.
The bank had continuing disclosure and compliance obligations as
part of a 2021 criminal settlement related to Deutsche Bank's
involvement in overseas corruption and market manipulation by
futures traders. That deal required Deutsche Bank to pay $130
million, but the settlement allowed it to avoid indictment in
exchange for staying out of trouble for three years and flagging
future potential problems to prosecutors.
The Wall Street Journal reported in December that the DOJ had
informed Deutsche Bank of the possible violation, although it
hadn't made a final decision.
As a result of the violation, Deutsche Bank agreed to extend the
term of an outside compliance monitor that dates to a different
settlement with the DOJ reached in 2015 over manipulation of
benchmark interest rates. The monitor will now be in place until
February 2023. The bank said prosecutors could take further action
on the 2021 deal, known as a deferred-prosecution agreement.
A Justice Department spokesman declined to comment. A Deutsche
Bank spokesman declined to comment further.
The German bank disclosed the DOJ's finding in its annual report
released Friday. Companies sometimes agree to hire outside firms to
monitor their future compliance and internal-governance systems
when they settle investigations. The monitor, which can be costly
for the bank, reports on the company's progress to the
government.
Write to Patricia Kowsmann at patricia.kowsmann@wsj.com and Dave
Michaels dave.michaels@wsj.com
(END) Dow Jones Newswires
March 11, 2022 11:48 ET (16:48 GMT)
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