Frankfurt - Deutsche Bank was fined by German regulators for being too slow to give the reasons for why it delayed confirmation that ex-CEOs Anshu Jain and Juergen Fitschen were stepping down.
Bafin, the German financial watchdog, deemed the delay to be a violation of securities rules and fined it 550,000 Euros ($598,000) for that and three other probes, according to an emailed statement Friday from the regulator. Magazine WiWo earlier reported the size of the fines, without giving details.
The bank’s supervisory board was meeting on a Sunday in June 2015 when news organizations began reporting the news that the executives were planning to leave, according to people with knowledge of the matter, who asked not to be identified because the matter is private.
The supervisory board hadn’t voted on Jain’s departure yet and decided it should wait before confirming the reports, the people said.
Deutsche Bank, led by Chief Executive Officer John Cryan, has resolved legal issues including a settlement with the US Justice Department in December that resulted in a penalty of $3.1 billion.
While the total amount of litigation expenses in 2017 is “to some extent uncertain,” they are expected to remain at last year’s level of 2.4 billion Euros ($2.61 billion), Deputy CEO Marcus Schenck said on an analyst call in late April.
“Bafin has completed the probe into a potential violation by Deutsche Bank AG of ad-hoc publication requirements in connection with the CEO change,” it said. “In relation to the publication of the ad-hoc release about the CEO change in June 2015, the notification about the reasons of self-release to Bafin was too late.”
Under certain circumstances, banks can decide not to immediately publish ad-hoc notifications but they must subsequently explain that decision to Bafin, a spokeswoman for the regulator said.