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Deutsche Bank wants to rebuild its reputation after the 2017 scandal regarding money laundering for Russia. The biggest lender in Germany considered that the best way to get out of this delicate situation is to urge the guilty parties to pay the consequences. In this case, the culprits are former executives while the aftermath is a $425 million fine coming from America and £163 million fine issued by the United Kingdom.
Deutsche Bank Shareholders Were Promised Collective Responsibility
On Thursday, Chairman Paul Achleitner rest shareholders assured that the professionals who were involved in their recent scandal would have to respect an agreement and pay for their misconduct. The chairman made this point clear during the annual general meeting on behalf of Deutsche Bank in Frankfurt. This notice involves even top leaders who had an active part in the illegality that triggered for the company a multi-million fine.
However, no one named the concerned former executives. Nonetheless, the German bank still has to finish up some legal details before pointing fingers. Achleitner mentioned that the company has to decide whether or not it has the legal frame to hold former employees accountable for their work actions. The board expects to reach a conclusion in the following months.
Former Executives Misconduct Disobeyed Company’s Interests
The current CEO, John Cryan, stated that former executives’ main misconduct was prizing short-term revenue above long-term interests of the company itself. The financial organization had its earnings impaired for two years in a row because of business misconduct. The company had to cover a January settlement with the United States valued at $7.2 billion.
As such, Deutsche Bank gave an explanation to its shareholders on why the organization was slow on answering these recent charges. The board is still assessing the legal terms that would otherwise allow them to call for collective responsibility. While there were no names mentioned during the annual meeting, there are around ten former executives who fit the description. Some of them are Josef Ackermann, Anshu Jain, and Juergen Fitschen.
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