Deutsche Bank Says It Acted Correctly in Italy Amid Probe Reportby
Bank is `confident' is `acted appropriately' in Italy
Deutsche Bank will continue to cooperate with authorities
Deutsche Bank AG said it didn’t breach any rules in Italy, following media reports that five former executives of Germany’s largest lender are being probed over alleged market manipulation.
The bank is “confident” that it “acted appropriately,” it said in an e-mailed statement on Friday. Authorities in Trani, Italy, are investigating the former employees on the sale of 7 billion euros ($8 billion) of Italian sovereign sales in the first half of 2011, Ansa reported on Friday, without saying from where it obtained the information. A Trani prosecutor declined to comment when reached by phone by Bloomberg.
Deutsche Bank co-Chief Executive Officer John Cryan has been selling risky assets and toughening internal compliance to restore investor confidence, hurt by 12.6 billion euros in costs linked to past misconduct. While the bank said last month that it’s “optimistic” that it will be able to settle “significant” litigation cases this year, Cryan has signaled legal charges may help spark another loss this year.
“Italy is a leading European economy and a very important market for us,” a spokesman for Deutsche Bank said in the statement. “We will of course continue to cooperate with the authorities in any review of this issue.”
In 2011, Italy was battling to stave off contagion from the region’s spreading fiscal crisis that forced countries from Ireland to Portugal into bailouts. While the nation’s government weathered the turmoil without tapping aid, the risk premium investors demanded to hold Italy’s 10-year debt over German bunds surged to an euro-era high at the time.
Deutsche Bank shares have dropped about 35 percent this year, while the 39-member Bloomberg Europe Banks and Financial Services Index decreased 23 percent.