Deutsche Bank raids in $1 billion investigation | Business Newsletter

Deutsche Bank has been raided for the second time in less than a month, this time after a $1 billion cleaning scandal that rocked the bank.

Regulators in Germany claimed that DWS, the bank’s wealth management arm, sold $1 billion worth of investment products that were more environmentally friendly and “sustainable” than they really were.

Last year, the former DWS sustainability chief blew the whistle on asset managers, saying they often exaggerate the success of their environmental, social and governance (ESG) strategy.

Police raided the Deutsche Bank headquarters and the DWS office in Frankfurt on Tuesday.

German prosecutors said there was “adequate factual evidence” that ESG factors were taken into account in a very small number of investments “but completely ignored in a large number of investments.” investments”, contradicting DWS’ claims to potential customers.

DWS has been investigated by the Securities and Exchange Commission and federal prosecutors in the US over the matter, which is the largest wash-up scandal to date.

The property manager has repeatedly denied all allegations.

After the raid, it said it was cooperating with “all relevant regulatory authorities”, according to the German news agency dpa.

More than 50 people, including federal law enforcement officers and officials from the German financial regulator BaFin, took part in the raid.

In a separate case, German authorities raided the lender at the end of April in an investigation into suspected money laundering.

The lender has been at the center of a series of scandals in recent years, from close ties to Donald Trump and tax evasion to the laundering of $10 billion in Russian money and violations of international sanctions. .

It has been fined more than $18 billion since 2000.

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