Deutsche Bank will pay more than 10 million euros to J Garcia-Carrion (JGC), Europe’s largest wine exporter, to settle a dispute over the alleged mis-selling of foreign exchange derivatives, as the lender nears the end of an internal probe that has already led to the departure of two senior executives, Report informs referring to the Financial Times.
The probe was launched after clients complained they had been sold sophisticated derivatives products they did not understand, potentially in contravention of EU rules designed to protect businesses from risky lending.
The departures of senior managers Louise Kitchen, head of Deutsche’s asset wind-down unit, and Jonathan Tinker, co-head of global foreign exchange, were linked to the scandal. Two traders who were operationally in charge of the problematic activities have already left the bank.
The decision to settle could add pressure on peers Goldman Sachs and BNP Paribas, which face similar accusations from JGC.