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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
ECB seeks capital clarity on Spire repacks
Dealers split between counterparty credit risk and market risk frameworks for repack RWAs
FSB chief defends global non-bank regulation drive
Schindler slams ‘misconception’ that regulators intend to impose standardised bank-like rules
Fed fractures post-SVB consensus on emergency liquidity
New supervisory principles support FHLB funding over discount window preparedness
Why UPIs could spell goodbye for OTC-Isins
Critics warn UK will miss opportunity to simplify transaction reporting if it spurns UPI
EC’s closing auction plan faces cool reception from markets
Participants say proposal for multiple EU equity closing auctions would split price formation
Fed pivots to material risk – but what is it, exactly?
Top US bank regulator will prioritise risks that matter most, but they could prove hard to pinpoint
Hopes rise for EU re-entry to UK swaps market
EC says discussions on draft decision softening derivatives trading obligation are ‘advanced’
BoE’s Ramsden defends UK’s ring-fencing regime
Deputy governor also says regulatory reform is coming to the UK gilt repo market