Whistle-Blower Said to Aid SEC in Deutsche Bank Bond Probe

The U.S. Securities and Exchange Commission is being helped by a whistle-blower in an investigation of Deutsche Bank AG’s post-crisis mortgage-trading business, according to people with knowledge of the situation.

The SEC received a whistle-blower complaint alleging that the bank inflated the value of mortgage bonds on its books and masked losses around 2013, said the people, who asked not to be identified because the matter is confidential. The SEC is probing how the bank valued government-backed mortgage bonds known as Agency pass-through securities that it amassed after the 2007 U.S. housing crisis.

Deutsche Bank CEO Cryan Gets No Relief as his Biggest Hire Exits

  • Bank said Quintin Price, head of asset management, to leave
  • Lender abandons plan for U.S. digital bank earlier this week

John Cryan’s plan to revamp Deutsche Bank AG risks unraveling as the departure of the chief executive officer’s most senior hire presents one more false start to a strategy he laid out last year.

Quintin Price, hired in October to oversee growth in the bank’s asset-management business, is leaving the bank after going on medical leave in mid-April, Germany’s largest lender said Wednesday. In the last two weeks, Cryan has abandoned plans for a new digital bank in the U.S. and said the firm will struggle to sell its German retail unit Postbank. A sale of its British insurance business, Abbey Life, is complicated by a regulatory inquiry, according to a person familiar with the matter.

Price’s departure and the stalled sales threaten progress on half of the six priorities Cryan detailed in his plan to boost capital levels and profitability by simplifying the lender and shrinking the trading business. The British banker, who took the helm last year, is battling to restore investor and employee confidence after his firm’s shares fell by a third this year, outpacing the decline of its European peers.

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“The bank is too complex and too big,” said Enrico Racioppi at Hammer Partners SA in Lugano, Switzerland, who has a sell rating on Deutsche Bank shares.  “It’s a difficult task that John Cryan is trying to sort out.”’

Deutsche Bank Shareholders Class Action Lawsuit

Khang & Khang LLP announces that it is investigating claims of potential misrepresentations by Deutsche Bank AG (“Deutsche Bank” or the “Company”) (DB). The investigation focuses on whether the Company and its officers violated securities laws by issuing misleading information to investors.

If you purchased shares of Deutsche Bank during the Class Period, please contact Joon M. Khang, Esquire, of Khang & Khang, 18101 Von Karman Avenue, 3rd Floor, Irvine, CA 92612, by telephone: (949) 419-3834, or by email at

Two Deutsche Bank Traders Indicted Over LIBOR Manipulation

The US Justice Department indicted two former Deutsche Bank traders Thursday for involvement in a scheme to manipulate the Libor dollar interest rate, crucial to financial contracts around the world.

The department said that between 2005 and 2011, Matthew Connolly of New Jersey and Gavin Campbell Black of London, worked with at least eight others to artificially fix the daily benchmark rate to benefit their own and their banks’ derivative positions.

The charges were only the latest in a sprawling international case that has seen traders from several banks charged, hit with steep fines and jailed, and the banks themselves heavily fined.

Connolly was Deutsche Bank’s supervisor of the Pool Trading Desk in New York, and Black was a derivatives trader in London when the manipulation took place.

Connolly was arrested on Thursday and was expected to appear in court in New York.




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