Deutsche Bank and Ex-Managers End Mediation Without Agreement

(Bloomberg) -deutsche Bank AG and five former executives ended the mediation without reaching a common ground in a dispute about allegations that the bank said it was damaging their careers.

Since mediation fails, it is more likely that former employees will sue in London, people who are familiar with the dispute, people who want the trial not to be specifically defined.

Michele Faissola is one of the former Deutsche Bank employees who claimed that the lender has damaged her careers in an Italian criminal case against Banca Monte Dei Paschi di Siena Spa. Dario Schiraldi, former senior executive of Deutsche Bank’s Department of Asset and Asset Management, filed a lawsuit in Frankfurt that claims € 152 million ($ 178 million). In the Frankfurt case, a hearing is planned to be held in December.

At the center of the demands, there is an audit report appointed at Deutsche Bank in 2013. At that time, now the General Manager Christian Sewing was held responsible for this review. Deutsche Bank avoided commenting.

Former employees, the audit was not handled impartially and unjustly fixed the crime to them, he said. He even claimed that they manipulated the relevant market prices and ultimately lead to convictions.

Deutsche Bank has previously defended the control fairly and rejected all the allegations.

In the original criminal case, Monte Paschi executives were accused of concealing the losses of the Italian lending, using the complex derivative transactions with Deutsche Bank personnel, and led to incorrectly presenting the financing of the firm financing. Former Deutsche bank managers were also accused of market manipulation.

After the first prisoner in 2019, six Deutsche Bank employees were completely acquitted by a Milan Court of Appeal in 2022, which found that he had no reasons for the trial. In October 2023, Italy’s Supreme Court upheld the acquittal.

Deutsche Bank said that five former Deutsche Bank employees who participated in the Monte Paschi case in March in March threatened to make allegations in an British court and filed a lawsuit in Frankfurt. Bank did not explain the names.

The lender added that the allegations would be firmly defending them in a firm way, including discussing the allegedly inflated, unrealistic losses ”.

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