German banks may face a hit of 1.9 billion euros ($2.4 billion) from their involvement in a dividend-stripping practice that has recently come under scrutiny, the country’s financial market regulator estimates.
The amount reflects the exposure of 24 banks involved in the transactions, known as Cum-Ex, calculated by regulator BaFin based on figures provided by the lenders. As part of a parliamentary inquiry, BaFin provided the information to German lawmaker Gerhard Schick, who confirmed the figures to Bloomberg.