Deutsche Bank has paid more than 10 million euros to Europe’s largest wine exporter to settle a dispute over the alleged sale of foreign currency derivatives, as the lender nears the end of the internal probe This has already led to the departure of two senior executives.
Late last year, Deutsche sent a large delegation to Madrid from Frankfurt to negotiate the settlement, which compensated Guy Garcia-Carrion for accumulated cash losses from exotic tools over six years, people familiar with the matter told the Financial Times.
As part of the deal, which was not previously reported, the bank also apologized for the behavior of traders and salespeople. The settlement decision could increase pressure on counterparts Goldman Sachs and BNP Paribas, who are facing similar accusations from JGC.
Deutsche declined to comment. JGC declined to comment.
The decision was made amid an internal investigation into the German lender known as Project Teal. The investigation was launched after customers complained about selling sophisticated derivative products they did not understand, which could contravene EU rules designed to protect companies from risky lending.
theft mentioned This month, the departures of senior managers Louise Kitchen, head of Deutsche’s asset liquidation unit, and Jonathan Tinker, co-head of global foreign exchange, were linked to the scandal. Two of the traders who were operationally responsible for the problematic activities have already left the bank.
The German lender has settled several other complaints in private and has avoided going to court, according to people familiar with the situation. When the Financial Times first reported on Deutsche’s investigation into the allegations in January, the bank said potential misconduct affected a “limited number of customers”.
Rising losses on some foreign currency swaps — promoted by Deutsche salespeople as a cheaper way to hedge currency exposure than traditional exchange rate insurance — have sent some clients into severe financial trouble.
JGC also has alleged That the French BNP incorrectly conducted currency transactions worth billions of euros that led to losses in the tens of millions.
The Financial Times revealed this month that an internal JGC investigation found that BNP had conducted more than 8,400 foreign exchange transactions with the company over a five-year period, causing cash losses of 75 million euros.
130-year-old wine producer Jumilla – best known for his bottled wine and juice brand, Don Simon – It is studying legal procedures after the French bank refused to provide compensation for losses. BNP said it has complied with all regulatory obligations.
Separately, JGC has sued Goldman Sachs in the High Court of London to recover part of the $6.2 million in FX derivative-related losses. Goldman emphasized that the products were not overly complex for a multinational with hedging needs and the risks were outlined.
The Spanish company said several losing deals were made inappropriately with one of its former top managers. A case was filed in Madrid, accusing the person of secretly conducting deals and covering them up internally by forging documents and misleading auditors.