Deutsche fires two for industrial espionage
A German bank has dismissed two executives after an investigation into spy activity
FRANKFURT - Deutsche Bank has sacked two executives in the wake of an internal investigation into whether Germany's largest bank conducted surveillance on another board member and others.
Regulators, lawyers and the state's Data Protection Authority have now launched their own investigations into whether the bank or its representatives could have broken civil regulations or criminal laws.
Rafael Schenz, the bank's head of German corporate security, was first suspended and has now been dismissed over allegations private detectives he hired to conduct spying on behalf of the bank breached privacy laws.
Wolfram Schmitt, the firm's head of investor relations, was also suspended and is now sacked, reportedly for disclosing confidential shareholder information to the sleuths hired by Schenz.
Allegations of corporate spying are especially controversial in Germany, which has strict privacy laws and is still recovering from East Germany's Cold War legacy of spying and informing on citizens.
The alleged targets of the bank's surveillance included Gerald Hermann, a former member of the bank's supervisory board, who was suspected by the bank of leaking sensitive information.
Michael Bohndorf, an outspoken shareholder who had been critical of the bank's senior management, was also allegedly a target, as was Hermann-Josef Lamberti, the bank's chief operating officer, and German media baron Leo Kirch, who has alleged that remarks by a Deutsche executive led to the failure of one of his companies.
The two dismissals are the result of a probe conducted by law firm Cleary Gottlieb Steen & Hamilton on behalf of Deutsche, which began with incidents disclosed in May stemming from events within the bank's corporate security department between 2001 and 2007.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
UK investment firms feeling the heat on prudential rules
Signs firms are falling behind FCA’s expectations on wind-down and liquidity risk management