
Difficult January for Deutsche Bank
LOSSES & LAWSUITS
In the middle of the month, the bank's dismissal of derivatives trader Anshul Rustagi was the lead story in the European edition of the Financial Times newspaper. Rustagi was accused by the firm of allegedly overstating his trading position by almost £30 million, and dismissed for gross misconduct after a disciplinary hearing. Rustagi traded synthetic collateralised debt obligations and other complex forms of credit derivatives.
And at the end of the month, the bank was forced to quit its role as joint corporate broker for BOC Group, because of concerns about a conflict of interest over its role as adviser to Linde, the German conglomerate. According to press accounts, the German bank's pair of roles set tongues wagging in the City when Linde made a £7.6 billion bid for the UK-based gas company BOC days earlier. Compounding the situation is the fact that Deutsche owns 10% of Linde and the bank's chief executive sits on Linde's board.
Also at the end of the month a German court ruled that the chairman of the bank's supervisory board, Rolf Breuer, was wrong to question the creditworthiness of Leo Kirch's PrintBeteiligungs unit in 2002 in an interview with Bloomberg television. The comments precipitated the collapse of the firm, which was Germany's biggest bankruptcy since World War II.
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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] 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 [email protected]
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 [email protected]
More on Regulation
Derivatives
Repo-linked renminbi floaters fail to excite investors
Muted demand dents China’s hope for repo fixing to become debt market’s benchmark of choice
Receive this by email