**Deutsche Bank Mediation Fails, Legal Action Looms for Ex-Managers**
In a recent development, Deutsche Bank AG and five former executives have concluded mediation efforts without reaching an agreement regarding allegations of wrongful conduct by the bank in a criminal case that reportedly impacted their careers. Sources familiar with the situation, who requested anonymity due to the private nature of the proceedings, indicate that the failure of mediation increases the likelihood of lawsuits being filed in London by the former employees.
Among the ex-employees is Michele Faissola, who claims that Deutsche Bank’s actions adversely affected his career in connection with an Italian criminal case involving Banca Monte dei Paschi di Siena SpA. Dario Schiraldi, a former senior manager in Deutsche Bank’s asset and wealth management division, has already initiated legal proceedings in Frankfurt, seeking approximately €152 million ($178 million) in damages. A hearing for this case is set for December.
Central to the dispute is an audit report commissioned by Deutsche Bank in 2013, which was overseen by the current Chief Executive Officer, Christian Sewing. The former employees argue that the audit was biased and unfairly assigned blame to them, alleging that it suggested they manipulated market prices, which contributed to their convictions. Deutsche Bank has previously defended the audit as impartial and has denied all allegations made by the former staff.
The original criminal case involved accusations against Monte Paschi managers for colluding with Deutsche Bank employees to conceal losses through complex derivative trades, misrepresenting the bank’s financial status from 2008 to 2012. The ex-Deutsche Bank managers faced charges of market manipulation as well. Although they were initially convicted in 2019, a Milan appeals court fully acquitted them in 2022, citing a lack of grounds for trial. This acquittal was upheld by Italy’s Supreme Court in October 2023.
In its annual report released in March, Deutsche Bank acknowledged that five former employees involved in the Monte Paschi case had threatened to pursue claims in an English court, with one already filing a lawsuit in Frankfurt. The bank did not disclose the names of the individuals but stated that it considers the claims to be entirely without merit and intends to defend itself vigorously against them, including disputing any exaggerated claims of losses.
As the situation unfolds, the implications for both Deutsche Bank and the former employees remain significant, with potential legal battles on the horizon.
**FAQ**
**What are the allegations against Deutsche Bank and its former employees?**
The allegations involve claims that Deutsche Bank acted wrongfully in a criminal case related to Banca Monte dei Paschi di Siena, impacting the careers of former executives. The ex-employees assert that an audit report unfairly blamed them for market manipulation, leading to their convictions, which were later overturned.