July 26, 2017 / 9:11 PM / 2 months ago

Deutsche Bank nears deal on bonuses paid to former managers: source

The head quarters of Germany's Deutsche Bank are photographed early evening in Frankfurt, Germany, January 31, 2017. REUTERS/Kai Pfaffenbach

FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) is close to a deal to get former board members to contribute substantial sums toward the costs of the bank’s past misconduct, as Germany’s biggest lender seeks to rebuild its reputation, a person familiar with the matter said on Wednesday.

The bank’s supervisory board will discuss the possible deal on Thursday, said the person, who spoke on condition of anonymity because an agreement was not yet finalised.

German newspaper Handelsblatt was the first to report on Wednesday that a resolution was in sight.

In May, supervisory board chairman Paul Achleitner told shareholders at the bank’s annual general meeting that the board and two committees were discussing the need for personal and collective responsibility and the bank had sought external legal advice.

Achleitner said at the time that discussions with former executives were at an advanced stage but talks have dragged on.

A settlement would mark a significant step in efforts to break with a turbulent period in the bank’s 147-year history.

Deutsche Bank transformed itself into a major player on Wall Street over the past two decades, but extravagant bets and poor conduct have resulted in a litigation bill of 15 billion euros ($17.58 billion) since 2009.

The bank has settled its most painful litigation cases, including alleged manipulation of interest rates and sham equities trading in Russia, which surfaced as late as 2015.

Reporting by Tom Sims

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below