Four Deutsche Bank employees jailed on Thursday

FRANKFURT Fri Dec 14, 2012 1:30am IST

Stocks

   

FRANKFURT (Reuters) - Four of the five Deutsche Bank (DBKGn.DE) employees arrested for money laundering or obstruction of justice related to a carbon trading scheme will remain in jail, the Frankfurt prosecutor said on Thursday.

One Deutsche Bank employee was allowed home on health grounds, the prosecutor said.

The employees were arrested during raids on Germany's flagship lender on Wednesday.

It is too early to conclude whether the raids, by 500 tax inspectors, police and prosecutors, would yield any new evidence, Frankfurt prosecutor Guenter Wittig said, adding, "This will take months. I cannot comment about an ongoing investigation."

The prosecutor's probe is focused on tax evasion linked to tax credits and a scheme involving the trading of carbon permits. As a result of the scheme, Deutsche Bank's 2009 tax return needed to be adjusted.

Deutsche Bank has said it voluntarily corrected its 2009 tax return, but noted that authorities disagreed over whether this had been done in a timely fashion. It declined to comment further on Thursday.

On Wednesday, prosecutors said they were investigating 25 bank staff on suspicion of severe tax evasion, money laundering and obstruction of justice, and searched the bank's headquarters and other premises in Berlin and Duesseldorf.

The investigations included probing the role of Deutsche Bank co-chief executive Juergen Fitschen and Chief Financial Officer Stefan Krause.

In a interview to be published in German tabloid Bild on Friday, Fitschen said he was "shaken" by the allegations but that he saw no reason to step down.

"I am convinced the allegations will be shown to be unfounded," he was quoted as saying in an advance version of the article.

He added however, that Deutsche Bank had made errors in its drive to be more successful internationally.

"In some instances we lost the correct perspective. We are determined to fix the errors of the past," he said, adding that the bank had already tried to change its culture, such as by setting up a body to review pay structures, and that more such steps would come.

(Reporting By Kathrin Jones and Edward Taylor; Additional reporting by Philipp Halstrick; Editing by Hans-Juergen Peters, Elaine Hardcastle and Nick Zieminski)

Reforms Push

REUTERS SHOWCASE

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage