Deutsche Bank paid more than 10 million euros to Europe’s largest wine exporter to resolve disputes arising from the suspected improper sale of foreign exchange derivatives as the bank is about to close the transaction Internal probe This has resulted in the departure of two senior managers.
People familiar with the matter told the Financial Times that at the end of last year, Deutsche Bank sent a high-level delegation from Frankfurt to Madrid to negotiate a settlement agreement that compensated J García-Carrión for accumulated cash losses caused by strange tools during the six-year period.
As part of a previously unreported transaction, the bank also apologized for the actions of its traders and sales staff. The settlement decision may put pressure on peers Goldman Sachs and BNP Paribas, which face similar accusations from JGC.
Deutsche Bank declined to comment. JGC declined to comment.
The decision was made during an internal investigation of a German lender named Project Teal. The investigation was launched after customers complained that they had sold complex derivatives that they did not understand, which may violate EU rules designed to protect companies from risky loans.
Financial Times Report This month, the departure of Louise Kitch, head of Deutsche Bank’s asset liquidation department, and Jonathan Tinker, co-head of global foreign exchange, were related to the scandal. The two traders responsible for the problematic activity have left the bank.
According to people familiar with the matter, the German bank has privately resolved several other complaints and avoided going to court. When the Financial Times first reported in January that Deutsche Bank was investigating these allegations, the bank stated that potential misconduct affected a “limited number of customers.”
The spiral of losses in some foreign exchange swaps — which Deutsche Bank salespersons believe is a cheaper way of hedging currency risks than traditional exchange rate insurance — has pushed some customers into serious financial problems.
JGC also has Allegedly BNP Paribas improperly conducted currency transactions worth billions of euros, resulting in losses of tens of millions of dollars.
The Financial Times revealed this month that an internal investigation by JGC found that BNP Paribas had conducted more than 8,400 foreign exchange transactions with the company within five years, resulting in a cash loss of 75 million euros.
This 130-year-old Jumilla wine producer-famous for its boxed wine and juice brands, Don Simon -After the Bank of France refused to provide compensation for losses, it is considering legal action. BNP Paribas stated that it complied with all regulatory obligations.
In addition, JGC is suing Goldman Sachs in the High Court of London, demanding a partial refund of US$6.2 million in losses related to exotic currency derivatives. Goldman Sachs insists that for multinational companies with hedging needs, these products are not overly complicated and the risks are clear.
The Spanish company stated that many of its loss-making transactions were improper transactions with a former senior manager. It has filed a lawsuit in Madrid, accusing the person of secretly conducting transactions and covering up internally by forging documents and misleading auditors.