Deutsche Bank Chief stares more than a decade ago to the role in risky trades

* CEO sewing credited with the cleaning of scandal-focused bank * Ex-Banker sues Deutsche, claims he is scapegoat for risky transactions * Allegations ask Deutsche to review the matter, says Person Said * Deutsche Bank is allegations ‘without merit’ by Tom Sims and John O’Donnell Frankfurt, August 20) –in 2013, Deutsche Bank, be, a Rishers) -In 2013, Deutsche Bank, is worn, carried) -in 2013, Deutsche Bank carried, carried. Star, the sensitive allocation of examination of derivatives examined in Italy. More than a decade later, sewing, now CEO, is staring at a lawsuit by a former Deutsche employee about his handling of the task. The case urged Deutsche to see how the bank and sewing, then chief auditor, managed the situation, according to a person with knowledge of the case. Dario Schiraldi, a former banker at Deutsche involved in the trades, claims in a 152 million euro lawsuit ($ 178 million) who seeks damages from the bank that oversees the actions of the money shooter, including the audit, overseeing more than a decade ago. Deutsche Bank has found no violation in recent months after the investigation into the trades, the person who is familiar with the case said. Nevertheless, the lawsuit – which will be heard in a Frankfurt court in December – is sewing, CEO since 2018 and is credited with the clearance of Deutsche Bank’s image, in the spotlight by publicly investigating his role at the peak of the global financial crisis. Schiraldi, five other former Bankers of the German lender, and the bank were acquitted in 2022, after initially being convicted by an Italian court in 2019 for being merged with the Italian bank Monte Dei Paschi (MPs) to hide losses at MPs using intricate derivative trades. In Germany, Deutsche’s accounting of the transactions was also the focus of regulators. Schiraldi’s lawsuit claims that the bankers blamed trades, while Deutsche Bank Management – including sewing as a chief auditor – tried to hide their tacit approval for risky and profitable transactions. Deutsche Bank announced Schiraldi’s lawsuit in its 2024 annual report announced earlier this year, in a list of potentially significant civil litigation and regulatory matters. “The facts of this long -standing matter are well known and have been discussed in detail over the past decade. The Supervisory Council supports the Management Board to defend the bank against this litigation,” chairman Alexander Wynnaendts said in a statement earlier this month. Sewing declined to comment on this story via a spokesman. As CEO, he took Deutsche Bank and returned to make a profit and restored his image after years of management, legal turmoil, losses and fines that threatened to fall to the bank. He was re -appointed for a third term in March as head of Deutsche, who plays a key role in German Chancellor Friedrich Merz’s “Made for Germany” initiative to pump the weakened economy. For this report, Reuters reviewed documents – including previously unreported details from the initial lawsuit, a March submission and e -post correspondence – and spoke to four people with direct knowledge of the matter on condition of anonymity. Reuters reports fresh details of the case for the first time, after reviewing Schiraldi’s claim, and how Germany’s biggest bank responds. Schiraldi has held other posts in finance since his LinkedIn profile, including the guidance of a Swiss family investment business, according to his LinkedIn profile. A central shelf of Schiraldi’s advocate’s argument is that sewing and the bank scapegoated Schiraldi and a handful of colleagues and later did not rectify the record. In 2014, Deutsche Bank took the findings of the bank’s audit in the MPS Ambag to its local regulator, the Italian central bank, and the ‘Deal Team’ – which included Schiraldi – blamed for ‘insufficient and selective disclosure’ on the trades. The information that was allegedly withheld – how the bank has reached billions of dollars’ bonds that support the transactions – allowed Deutsche to discuss the trades as loans rather than derivatives, the findings of the bank’s audit showed. This contributed to reducing the amount of capital it had to hold to cover risks, making it more profitable. “An appropriate handling … would have resulted in the transactions being rejected or escalated,” Deutsche told the Bank of Italy in 2014, according to the chips that Reuters saw. Schiraldi disputes that there is such a coverage of information and that the transactions were widely understood. Reuters could not determine management’s role in the decline in the transactions. Deutsche Bank confirmed to Reuters that the ‘audit has identified material failures’ but refused to comment on communication with regulators. Schiraldi’s advocates claim that the audit of the trades of Deutsche Bank had a predetermined result and used only a fraction of the available documents. In the course of their dispute with the bank, they have successfully acquired the release of several million email and documents, which they believe, in a March 2025 court document seen by Reuters, shows defects in the way the bank handled the case. Reuters could only review a small fraction of the documents. According to the person with direct knowledge of the review, the publicity that the bank tries to end Schiraldi’s demands has. In a long response to questions from Reuters, Deutsche Bank said the allegations were ‘false’ that the audit was thorough and independent, and that managers were involved ‘their responsibilities appropriate’. Sewing was a credit officer in front of the audit and approved parts of other similar offers. “We stand at the core findings of the audit,” a spokeswoman for Deutsche Bank said. Although the case will come before a German court later this year, such disputes can also be resolved out of court. In his statement to Reuters, the bank said the claims made in the lawsuit were “based on wrong allegations”, and “an attempt to bring publicity by causing serious damage to the good reputation of drivers.” ($ 1 = 0.8529 euros) (Reporting by Tom Sims and John O’Donnell; Editing by Elisha Martinuzzi and Susan Fenton)