Deutsche Bank Wins Bid to Throw Out Ex-Trader’s Bonus Suitby
Paturel has $7.6 million bonus lawsuit thrown out in U.K.
Paturel received $6.3 million in bonuses in 2008 and 2009
Deutsche Bank AG won a bid to have a lawsuit filed by an ex-trader seeking a 5 million-pound ($7.6 million) bonus thrown out by a London judge who said the case had no “real prospect of success.”
Yves Paturel, who was fired during probes over the manipulation of Libor rates, filed a claim that suggested Deutsche Bank should’ve "mirrored" bonus payments given to more senior or successful colleagues, Christopher Jeans, the bank’s lawyer, said in court documents in the case.
"There were clearly sound reasons for," the bank’s "decision to award different bonuses to" Paturel’s colleagues, Judge Rabinder Singh said while dismissing the claim in a London court Friday.
Paturel received bonuses of 1.2 million pounds in 2008 and 2.96 million pounds the following year "at the height of the financial crisis," Jeans said. "These were the highest discretionary awards given to any trader at the claimant’s level on the London money market derivatives desk in each of the years."
Lawmakers and regulators cracked down on banker pay in the wake of the financial crisis, putting an end to many of the awards highlighted in the lawsuit. Still, the claim captures a snapshot of compensation in the industry before a series of scandals.
Paturel was fired in April when Frankfurt-based Deutsche Bank paid a record $2.5 billion in fines to settle U.S. and U.K. investigations into its role in rigging the London interbank offered rate.
Judge Singh refused an application by Paturel’s lawyers to keep the lawsuit alive and denied them permission to appeal. Alexandra Carn, one of Paturel’s lawyers, declined to comment on today’s rulings. A spokesman for Deutsche Bank didn’t immediately comment on the ruling.
Paturel claimed former Deutsche Bank trader Christian Bittar, who was charged as part of the Libor probe on Friday, and a colleague, Carl Maine, received bonuses far in excess of his payout. In 2008, Bittar made 500 million euros ($537 million) for the bank and was due a bonus of more than 50 million euros under his contract, according to people with knowledge of the situation. He lost about 40 million euros in bonuses after he was fired in 2011.
Bittar, who was senior to Paturel, and Maine were seen as integral to the bank’s success and paid on different metrics in a bid to retain them. Deutsche Bank would have missed out on millions in revenue should Bittar have left, Jeans said at an earlier hearing.