**Deutsche Bank CEO Faces Lawsuit Over Past Derivatives Investigation**
Meta Description: Former Deutsche Bank employee sues the bank, alleging scapegoating in risky derivatives trades, prompting a review of CEO Christian Sewing’s actions.
URL Slug: deutsche-bank-ceo-lawsuit-derivatives-investigation
**Deutsche Bank CEO Faces Lawsuit Over Past Derivatives Investigation**
In a significant legal development, Christian Sewing, the CEO of Deutsche Bank, is under scrutiny due to a lawsuit filed by a former employee, Dario Schiraldi. The lawsuit, which seeks €152 million ($178 million) in damages, alleges that Schiraldi was unfairly scapegoated for risky derivatives trades that were conducted over a decade ago. This case has prompted Deutsche Bank to reassess how the situation was managed during Sewing’s tenure as chief auditor.
The origins of this controversy date back to 2013 when Deutsche Bank assigned Sewing the critical task of investigating derivatives trades that were under scrutiny in Italy. Now, more than ten years later, Schiraldi claims that the bank’s actions, including the audit overseen by Sewing, have severely damaged his reputation and earnings. According to court documents reviewed by Reuters, Schiraldi argues that he and other bankers were made to take the fall for trades that were tacitly approved by Deutsche Bank management.
In 2022, Schiraldi and five other former bankers were acquitted after initially being convicted by an Italian court in 2019 for colluding with Monte dei Paschi (MPS) to conceal losses through complex derivatives transactions. The case has also drawn the attention of German regulators, who scrutinized Deutsche Bank’s accounting of these transactions.
Despite the ongoing lawsuit, which is set to be heard in a Frankfurt court in December, Deutsche Bank’s internal review has reportedly found no wrongdoing related to the trades. The bank disclosed the lawsuit in its 2024 annual report, highlighting its potential significance in civil litigation and regulatory matters. Chairman Alexander Wynaendts expressed the Supervisory Board’s support for the Management Board in defending against the claims.
Sewing, who has been credited with revitalizing Deutsche Bank’s image and returning it to profitability since becoming CEO in 2018, has not publicly commented on the lawsuit. His leadership has been marked by efforts to stabilize the bank after years of legal challenges and financial losses. Recently reappointed for a third term, Sewing is also involved in initiatives aimed at boosting the German economy.
As this legal battle unfolds, it raises questions about accountability and the management of risk within major financial institutions, particularly during tumultuous periods like the global financial crisis.
**FAQ**
**What is the lawsuit against Deutsche Bank about?**
The lawsuit, filed by former employee Dario Schiraldi, claims he was unfairly blamed for risky derivatives trades overseen by Deutsche Bank management, including CEO Christian Sewing.