Deutsche Bank’s legal woes seemingly never come to an end. Prosecutors in Italy investigating the cover up of losses at Italian Monte dei Paschi, the world’s oldest bank, allege that bankers at the German lender have been part of an international criminal organization. The charge constitutes aggravating circumstances to the already existing accusations over market manipulation the bank faces in the case.
Deutsche Bank and Nomura holdings, a Japanese financial firm, went on trial in December, accused of being in cahoots with ailing Monte Paschi to spruce up the Italian lender’s balance sheet. Milan prosecutors originally charged 13 former managers of Deutsche Bank, Nomura and Monte Paschi for alleged false accounting and market manipulation.
But the new charges brought forward to the consideration of the three-judge panel would lead to higher penalties if confirmed. Prosecutors presented internal Deutsche Bank documents and emails, seen by news agency Bloomberg, to convince judges of the additional, aggravating circumstances.