Deutsche Bank’s DWS Slumps After U.S., Germany ESG Probe
- Investigation adds to headaches for Deutsche Bank CEO Sewing
- DWS CEO has made sustainability a key plank of his strategy
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Deutsche Bank AG’s asset-management arm DWS Group slumped the most in almost 18 months after authorities in the U.S. and Germany began a probe into allegations that the firm exaggerated the environmental or social credentials of some ESG-labeled investment products.
BaFin, the firm’s local financial markets regulator and U.S. prosecutors are looking at recent claims made by DWS Group’s ex-sustainability chief, Desiree Fixler, that the firm declared more assets had been screened for ESG criteria than they actually had, according to people familiar with the matter.