Deutsche Bank May Have Rigged Index in Paschi Deal, Audit Shows
- Bafin report cited ‘abnormalities’ in benchmarks tied to trade
- Bankers face trial over deal prosecutors say was fraudulent
Deutsche Bank Records Said to Show Silver Rigging Scheme
This article is for subscribers only.
Deutsche Bank AG employees may have manipulated internal indexes as part of an allegedly fraudulent scheme to help Banca Monte dei Paschi di Siena SpA conceal losses, according to an audit commissioned by German regulators.
The study, requested by watchdog Bafin and seen by Bloomberg, says an internal Deutsche Bank review described “abnormalities” in the values of proprietary indexes used to set the price for the Monte Paschi deal in December 2008. While investigators at the Frankfurt-based bank couldn’t “unequivocally” link that to manipulation or the deal’s outcome, Deutsche Bank didn’t have any guidelines for monitoring the indexes for potential rigging, according to the audit.