Germany’s top financial regulator BaFin on Friday fined Deutsche Bank a total of €550,000 ($600,000) for repeatedly failing to disclose reasons for top management changes in a timely manner.
BaFin said in a statement on Friday that in June 21015, the lender unnecessarily postponed confirmation of the fact that ex-CEOs Anshu Jain and Juergen Fitschen were stepping down. News agencies reported the change an hour before it was officially announced, citing sources with knowledge of the matter.
The watchdog said Deutsche Bank was unable to provide a satisfactory explanation for its delay in confirming the news, and that this was a a violation of securities rules.
German companies are allowed to defer so-called ad-hoc notifications to inform shareholders of market-moving information if the news could potentially be damaging to the firm. If that is the case, they have to make sure the information is not released to the public by any other means, however, such as through the press.
Lawsuits and legal problems have plagued Germany’s largest bank and since taking the helm, Deutsche CEO John Cryan has resolved a series of issues. The most pressing of these was a settlement with the US Department of Justice over toxic mortgages, which led to a payment of $3.1 billion.
Expenses for litigation charges in 2017 are expected to remain high at around last year’s levels of €2.4 billion, deputy CEO Marcus Schenck told analysts during a call in April.