German financial regulator Bafin, which last month completed its review into Libor rigging, criticized several current and former top managers at Deutsche Bank AG, including outgoing co-Chief Executive Officer Anshu Jain, according to German Spiegel magazine.
A Bafin report concludes that no board member was directly involved in manipulating interest rates, according to a preview of Spiegel released Friday, which cites unidentified people familiar with the report. The regulator found serious negligence in control of business processes, organization and dealing with the affair, Spiegel reported. Bafin also criticizes former CEO Josef Ackermann and head of personnel Stephan Leithner, Spiegel said.
The bank was fined a record $2.5 billion for manipulating interest-rate benchmarks in April. Foot-dragging and evasions prompted Britain’s Financial Conduct Authority to sanction the bank for not dealing with the regulator appropriately as part of its settlement. The bank still faces potential fines related to foreign exchange, mortgage- and asset-backed securities and precious metals dealings, and is under investigation for alleged U.S. sanctions violations, filings show.
Deutsche Bank on Sunday announced Jain, 52, will be stepping down early to be replaced by supervisory board member John Cryan next month. Co-CEO Juergen Fitschen, 66, departs next year, leaving Cryan as the sole head of the lender.
It’s “categorically false” to imply that Jain’s decision to step down early was forced by regulators, Deutsche Bank spokesman Christian Streckert told Bloomberg. He declined to comment on the Libor report.
After receiving Deutsche Bank’s response, Bafin will decide on the consequences, the regulator said last month. An official for Bafin declined to comment further on Friday.
A lawyer for Ackermann didn’t immediately return a call to his office.