Deutsche Bank CEO Under Fire for Decade-Old Risky Trades
In a new twist to a long-running financial saga, Deutsche Bank CEO Christian Sewing faces scrutiny for his role in managing controversial derivatives trades from over a decade ago. This comes as Dario Schiraldi, a former Deutsche Bank employee, files a lawsuit claiming he was scapegoated for the risky deals.
The lawsuit has prompted Deutsche Bank to review the case. Sewing, once praised for cleaning up the bank’s image, is now back in the spotlight.
Table of Contents
The Background: A Decade-Old Controversy
Back in 2013, Christian Sewing was asked to investigate derivatives trades in Italy that had come under fire. Now, in 2025, Sewing—now the CEO—faces criticism for how he handled that investigation.
The controversy centers on Dario Schiraldi’s lawsuit. He claims the bank’s actions, including Sewing’s audit, damaged his reputation and earnings.
The Lawsuit and Its Implications
Schiraldi is seeking 152 million euros ($178 million) in damages. He alleges Deutsche Bank’s management, including Sewing, tried to hide their approval of risky, lucrative deals.
The case heads to a Frankfurt court in December. It will publicly examine Sewing’s actions during the fallout from the global financial crisis.
Schiraldi claims the bankers took the fall for the trades, while management covered up their own involvement. Court documents reviewed by Reuters show Deutsche Bank’s recent internal review found no wrongdoing.
Still, the lawsuit puts Sewing, who once restored Deutsche Bank’s image, in a tough spot.
Deutsche Bank’s Response
Deutsche Bank disclosed Schiraldi’s lawsuit in its 2024 annual report, calling it a potentially significant civil litigation and regulatory matter. The bank insists the allegations are *without merit* and stands behind its management board in fighting the case.
Chairman Alexander Wynaendts has publicly supported the board, saying the facts have been discussed in detail for years.
Sewing’s Role and Reputation
Christian Sewing, who declined to comment for this story through a spokesperson, has been credited with slimming down Deutsche Bank and returning it to profit after years of chaos and losses. He was reappointed in March for a third term as CEO and is now involved in German Chancellor Friedrich Merz’s “Made For Germany” economic initiative.
The upcoming court case will put Sewing’s past decisions under the microscope. It’s hard to say what impact that’ll have on his reputation, but it’s definitely a high-stakes moment.
The Initial Investigation and Audit
The controversy goes back to 2013, when Sewing was assigned to investigate derivatives trades in Italy. Those trades were under scrutiny for hiding losses at Monte dei Paschi (MPS), an Italian bank.
In 2019, Schiraldi and five other former Deutsche Bank employees were convicted by an Italian court for colluding with MPS. They were acquitted in 2022.
Allegations of a Cover-Up
Schiraldi’s lawsuit claims Deutsche Bank’s audit of the trades had a predetermined outcome. He says management wanted to hide their approval of the deals.
The audit findings, presented to the Italian central bank in 2014, blamed the “Deal Team” for *insufficient and selective disclosure* on the trades. This allowed Deutsche Bank to book the trades as loans rather than derivatives, which reduced the capital it needed to hold and made the deals more profitable.
Schiraldi disagrees, arguing the deals were widely understood and there wasn’t any cover-up. He also says the audit only used a fraction of the available documents, leading to a flawed conclusion.
Deutsche Bank’s Defense
Deutsche Bank insists the audit was thorough and independent. The bank says the executives involved did their jobs properly.
They also point out that Sewing had been a credit officer before the audit and had approved parts of other similar deals.
Management’s Review
One of Deutsche Bank’s management board members reviewed the case, digging through emails and documents from that period. This internal review backs the bank’s claim that the allegations are false and the audit’s findings are valid.
Deutsche Bank suggests the lawsuit is just an attempt to generate publicity and damage the reputations of its executives. The bank says it’s confident in its position and ready to defend itself in court.
The Road Ahead
The lawsuit heads to a Frankfurt court later this year. Honestly, these disputes sometimes settle before reaching trial, but this one seems different.
Sewing and Deutsche Bank are about to face serious scrutiny. The case could really shake up Sewing’s reputation, not to mention Deutsche Bank’s efforts to keep its image on track.
For more details on this developing story, you can read the full article on Reuters.
