Accusations against the German Bafin Bank – For too long turned a blind eye – Süddeutsche.de

Display

• The German regulator, BaFin has published a report made in which she raises charges against the former head of Deutsche Bank, Anshu Jain,.
• It’s about the question of whether he knew that the Bank’s employees have the key interest rate Libor manipulation.
• Jain and Co. would have looked the other way for too long, says the paper .

Harald Freiberger , Ulrich Schäfer and Meike Schreiber

When Josef Ackermann in June 2008 picked up the phone and with Anshu Jain said while he was supposed to have been really angry. There were scolded the former head of Deutsche Bank, in that area, the Jain passes, trading in securities of all kinds, “cultural deficit”

To reread the quote -. And also the statement that Ackermann was furious – in a 37-page letter, sent to the German bank ten weeks before the relevant department head of the German regulator, BaFin, Frauke Menke. The letter is about the manipulation of the most important reference interest rate of the financial markets to the Libor, and Menke expects above all with the man who has resigned a few weeks later:. With Anshu Jain

Jain led three years the German bank, had set out the trained investment banker with the aim of also complained of Ackermann to resolve “cultural deficit”. Failed he is also because to him, this has not succeeded – and perhaps also because Frauke Menke has this failure denounced such violent and threatened with consequences. The timing is certainly conspicuous: Menkes letter dated on 11 May; May 21 are Jain and the second head of the bank, Jürgen Fitschen, slapped at the general meeting of the shareholders, Jain indicated thereafter in a small circle for the first time the possibility to give up his post; June 7 both come back.

Enlightenment not quickly and decisively enough ahead

Display

Menkes letter was posted on Friday from the Wall Street Journal on his website publicized. The story revolves around the question of whether people leading Deutsche Bank knew (or should have known) that bankers have manipulated in London, together with colleagues from other banks in the London Libor. . The Libor is crucial to the value of investments in the trillions, and serves as the basis for the most adventurous bets on financial markets

have

Jain and Co., as is summarized the allegation of Menke, looked the other way for too long; they have the high profits, achieved the dealer Deutsche Bank with its Interest bets grateful tolerated; but they have not questioned whether really everything is above board, when suddenly a lot more powerful than in previous years totals be retracted; and they have followed, as the accusations became public, the Enlightenment not quickly and decisively promoted enough.

Jain was not directly involved in the manipulation of the Libor, which he insists repeatedly. He has also not given to all that is known, the contract for it. So it is also in the Bafin report. But he has, so it throws him Menke ago, created that culture could thrive in such manipulations. Jain had “been in charge, which favors such behavior” as head of Global Markets Department of the organization and working environment have, according to the report. Menke speaks of a “large number” of allegations, adding that these were in the sum of “serious”.

collusion in chat rooms called “The Cartel” and “The Mafia”

It starts with the fact that Jain London trading floor in 2005 was it rebuilt. The traders who made rich with interest betting and the Bank, were then, so it looks the Bafin, much too close to the so-called submitters that define every noon the Libor in a bidding competition with other banks. The Libor was manipulated according to findings of regulators in Europe and the US over the years through the collusion involved Submitter several banks; sometimes they exchanged views this in obscure chat rooms with names like “The Cartel” or “The Mafia” from.

The new seating plan at Deutsche Bank in London, the conflicts of interest between traders and submitters are loud Bafin “reinforced “been, writes Menke. A special role was played by Christian Bittar, the highest-paid and most successful traders, which the German bank probably ever had: He earned his best year a bonus of 80 million euros

Anshu Jain interviewed by the FAS on 17 May 2015

“Yes, there were mistakes made, and we have learned from it. We help to forces in the investigation, the authorities recognize this.”

Jain’ve writes Menke, had a remarkable relationship with Bittar, he had promoted him and used with Ackermann for a high bonus. Bittar and Carl Maine, another interest rate trader, would have “mountain of money” (“mountain of money”) earned for the bank, Jain is quoted as saying in a telephone conversation with Ackermann, cited from Menke, therefore they should be a bonus of 130 get million euros. The two were “the best people we have,” they were “good guys”.