Deutsche Bank’s former executives may be off the hook from facing prosecution for their roles in the Libor manipulation scandal and other alleged mismanagement, according to information from the bank's inner circle.
Citing inside sources, German Sunday newspaper Bild am Sonntag claims that no evidence of personal misconduct by former CEOs Anshu Jain, Jürgen Fitschen and Josef Ackermann was found in the early stages of a report commissioned by Deutsche Bank. At best, the execs were at fault from an organizational standpoint, according to the report.
According to the newspaper, the supervisory board of Germany’s largest bank commissioned the report from several law firms to see if compensation could be claimed or recovered from the frozen bonuses of its scandalized ex-managers. It is still too early to say if Deutsche Bank will take legal action. Shareholders likely won't find out the answer until May 18, the date of the company's next annual general meeting.
Despite Mr. Jain and Mr. Fitschen leaving the bank in June 2015, both have remained in the headlines due to Deutsche's mounting litigation costs, record fines for rigging the Libor benchmark rate and various of other controversies. Deutsche Bank agreed to a $7.2 billion settlement with the U.S. Department of Justice for selling opaque bonds on home loans.
Last week, the lender took out full-page ads in German newspapers apologizing for misconduct on behalf of top management.
In January it was announced that Mr. Jain would be taking up a new post on Wall Street as the president of investment bank Cantor Fitzgerald LP. Meanwhile, Mr. Fitschen joined the advisory board of Deutsche Oppenheim, a part of Deutsche Bank’s wealth management business.