• Germany's news in English

Deutsche Bank pays $145 mln to settle US suit

The Local · 15 Nov 2011, 09:50

Published: 15 Nov 2011 09:50 GMT+01:00

Facebook Twitter Google+ reddit

The money is being paid to the National Credit Union Administration and is supposed to help cover billions of dollars the federal organisation charged other credit unions for expenses related to liquidating failed credit unions in 2009 and 2010.

Citigroup also agreed to pay $20.5 million (€15 million) in the settlement deal. Despite the payments, both banks denied any wrongdoing.

The announcement comes at a sensitive time for Deutsche Bank, as its chief executive Josef Ackermann said on Monday he would not take a seat on the bank’s supervisory board next year as originally envisaged following his planned departure from the management board next year.

Ackermann cited the “extremely challenging conditions on the international financial markets and in the political-regulatory environment,” which demand his full attention as the current management board chair for the decision. He is slated to step down as CEO next May.

But also possibly playing into the decision may be a brewing investigation by Munich prosecutors over Ackermann’s testimony in a civil suit connected to the demise of the media group of the late Leo Kirch.

The offices of both Ackermann and ex-supervisory board chief Clemens Börsig, as well as the home of former Deutsche Bank CEO Rolf Breuer were searched as part of the investigation.

Deutsche Bank itself rejected the accusations and slammed the action by prosecutors as "disproportionate".

"The bank is confident that, as in all previous proceedings in the Kirch case, the charges will be shown to be unfounded," it said.

Story continues below…

Kirch, who died earlier this year, sued Deutsche Bank a number of years ago, saying that the bank's then CEO Breuer had questioned the creditworthiness of his media empire, ultimately leading to its collapse.

The Local/AFP/DPA

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

13:14 November 15, 2011 by sebastian2010
If any one should have to pay a fine it should be the USA banks, back to the people. Greedy sobs
01:19 November 16, 2011 by jmclewis
Deutsche Bank would like to remind everyone this is a settlement of disagreements; not an admittance of guilt! BOA & Chase suck too !
Today's headlines
Outrage over ruling on 'brutal' gang rape of teen girl
The now convicted suspects, sitting in court in Hamburg. Photo: DPA.

A 14-year-old girl was gang-raped and left partially clothed and unconscious in freezing temperatures. Now prosecutors are appealing the sentences for the young men found guilty, most of whom will not set foot in jail.

Dozens of Turkish diplomats apply for asylum in Germany
Demonstrators holding a giant Turkish flag protest against the attempted coup in Istanbul in July. Photo: DPA.

Since the failed putsch attempt in Turkey in July, Germany has received 35 asylum applications from people with Turkish diplomatic passports, the Interior Ministry confirmed on Wednesday.

Hertha Berlin fan club criticised for 'anti-gay banner'
Hertha BSC beat FC Cologne 2-1. Photo: DPA

A 50 metre fan banner apparently mocking the idea of gay adoption has overshadowed Hertha BSC's win in the Bundesliga.

Germany stalls Chinese takeover of tech firm Aixtron
Aixtron headquarters in Herzogenrath. Photo: DPA

The German government on Monday said it had withdrawn approval for a Chinese firm to acquire Aixtron, a supplier to the semiconductor industry, amid growing unease over Chinese investment in German companies.

Politicians call for tough sentences for 'killer clowns'
File photo: DPA.

Now that the so-called 'killer clown' craze has spread from the US to Germany, elected officials are drawing a hard line against such "pranks", with some threatening offenders with jail time of up to a year.

Nearly one in ten Germans are severely disabled
Photo: DPA

New figures reveal that 9.3 percent of the German population last year were considered severely disabled.

The Local List
Germany's top 10 most surreal sites to visit
The Upside-Down House, in Mecklenburg–Western Pomerania. Photo: Olaf Meister / Wikimedia Commons

From upside-down houses on Baltic islands to a fairy-tale castle near the Austrian border, Germany is a treasure trove of the extraordinary.

Bavarian critics back Merkel for Chancellor again
Photo: DPA

The Christian Social Union (CSU) have long delayed backing Angela Merkel as their candidate for Chancellor in next year's general election. But now key leaders are supporting her publicly.

Four taken to hospital after hotel toilet bursts into flames
File photo: DPA.

Four guests at a Nuremberg hotel were taken to hospital due to smoke inhalation early Monday morning after a toilet there burst into flames.

Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German towns, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd