Deutsche Bank CEO faces fresh scrutiny over past role in risky trades
Deutsche Bank chief executive Christian Sewing is under renewed scrutiny over his role in investigating controversial derivatives deals more than a decade ago, following a lawsuit brought by a former colleague.
Ex-banker Dario Schiraldi has filed a €152 million ($178 million) damages claim, alleging that an internal audit overseen by Sewing in 2013 unfairly damaged his reputation and career. The case, which will be heard in Frankfurt in December, has prompted Germany’s largest lender to review how the matter was handled, News.Az reports, citing Reuters.
Sewing, credited with cleaning up Deutsche Bank’s scandal-hit reputation since taking over as CEO in 2018, was the bank’s chief auditor when the trades came under investigation. The deals involved Italian lender Monte dei Paschi (MPS), which prosecutors alleged used complex derivatives to conceal losses.
Although Sewing and other Deutsche executives were cleared of wrongdoing, Schiraldi argues that management tacitly approved the risky trades while shifting blame onto individual bankers.
Deutsche Bank says the claims are “without merit” and that its supervisory board backs management in defending against the suit. Sewing has declined to comment.
The lawsuit revives questions about the bank’s troubled past just as Sewing, reappointed in March for a third term, leads Deutsche’s contribution to Chancellor Friedrich Merz’s “Made for Germany” economic push.
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