Dealmaking helps Deutsche Bank land biggest profit in a decade To contact the reporters on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net;Donal Griffin in London at dgriffin10@bloomberg.net, To contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net, ;Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Christopher Elser, Chris Reiter, {{data.symbol | reutersRICLabelFormat:group.RICS}}, {{ stock | formatPrefix }}{{ stock.netChng | formatNetChange }}. The appointment is subject to final regulatory approvals. The industry leader for online information for tax, accounting and finance professionals. Now, its approaching the highest levels of the German lender, with three key figures -- investment banking chief Garth Ritchie, former co-Chief Executive Officer Anshu Jain and his predecessor Josef Ackermann -- among 80 suspects linked to the bank and being probed by prosecutors in the so-called Cum-Ex affair, according to people familiar with the matter. They worked with companies wanting to invest in the scheme as well as the divisions at Deutsche Bank that were responsible for loaning cash. AFC has also worked closely with the businesses to formulate a target operating model which permit our business partners to actively manage our financial crime risks. The audit dated April 16, 2015 pointed to significant failings in overseeing two traders, Simon Pearson and Joe Penna, who they say acted as middle men between the clients and the bank departments that lent money to fund the cum-ex scheme and issued tax certificates. Log in or sign up for Facebook to connect with friends, family and people you know. We will continue our 60 day strategic review in the new CAO area. The finance giant had Cum-Ex clients that were loaned as much as 1 billion euros ($1.13 billion). A person involved in the case gave Reuters the name of a lawyer he said represented Pearson and Penna. Report: Internal Deutsche audit details links to 'cum-ex' scandal Carson has since left Deutsche Bank. Joe will play an important role in this review. Other global banks, including Santander and Macquarie, are also under investigation for their roles in cum-ex trading schemes. Joe Penna - owner - Joseph E Penna | LinkedIn An internal report from Deutsche Bank, written by legal firm Freshfields, indicated that senior management at the German bank was aware of the scheme. Husband of model Salpa embroiled in German share-trading scandal The reports highlighted the role of the traders but also pointed to failures of the banks internal controls as well as lapses of managers in the global financial markets division. A series of internal audits commissioned by Deutsche Bank and carried out by Freshfields looks at the bank's loans to companies that carried out this type of trade. Penna maintains the YouTube channel MysteryGuitarMan. The company traded only with Deutsche Bank and other Ballance Group companies, according to a Ballance report for the year ended October 2010. In order for the scheme to work, Deutsche Bank would loan money to firms which would then make trades which, in turn, they could then claim tax credits on. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Group Tax confirmed in March 2009 the provision of leverage for cum-ex trades through Deutsche Bank.. The documents were obtained as part of a European media investigation coordinated by non-profit newsroom Correctiv. Deutsche Bank announces additional measures to reinforce net zero commitment, Deutsche Bank and WWF agree on cooperation, A message from Christian Sewing on our full-year results 2022, Deutsche Bank reports 2022 profit before tax of 5.6 billion, Deutsche Bank publishes 2023 SREP requirements, Christian Sewing: "We need an Agenda 2030 for Europe", Global Advisory Board to advise Deutsche Bank on key trends in business and politics, A message from Christian Sewing on Q3 results 2022, Copyright 2023 Deutsche Bank AG, Frankfurt am Main, 0 According to one of the Freshfields reports dated Nov 28, 2013, Deutsche lent shares to Seriva, a client involved in cum-ex, via a chain of brokers in 2008. Deutsche made at least 18 million. The Annual Report 2021 includes an overview of Deutsche Bank, the management report with the compensation report, the bank's audited consolidated financial statements, the corporate governance statement and supplementary information. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Jet-setting Georgia Penna enjoys the high life in Dubai with husband [3], By January 2011, MysteryGuitarMan became the most subscribed channel in Brazil. Group Tax confirmed in March 2009 the provision of leverage for cum-ex trades through Deutsche Bank. A Deutsche Bank spokesman said that Deutsche Bank was involved in some of its clients cum-ex transactions and that it was fully cooperating with investigators. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europe's Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. Banks or Fintechs Who will be shaping the future of the financial industry? A German lawyer for Pearson declined to comment. Will greater investment in water resources make for a more sustainable future? One of the audits points to failings by two traders, Simon Pearson and Joe Penna, and to other management shortcomings. j***@db.com. 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All quotes delayed a minimum of 15 minutes. Deutsche Bank appoints U.S. general counsel to head anti-financial American Airlines and its flight attendants union on Friday jointly applied for federal mediation in contract negotiations. The Deutsche Bank spokesman declined to comment on Seriva. Last year, Deutsche Bank settled a probe by Frankfurt prosecutors into the Nummus work for 4 million euros. For over a decade, one of the biggest financial scandals in German history has been snaking its way through Deutsche Bank AG. One part of the audit addresses Deutsche Banks decision to lend money to companies what the audit calls provision of finance so that those companies could carry out cum-ex trades and the discussion of risks to its reputation. (Charles W. Lamb; Carl McDaniel; Joe F. Hair) Business-To-Business Marketing (Robert P. Vitale; Joseph Giglierano; Waldemar Pfoertsch) Cognitive Psychology (Robert . Oct. 29, 2020, 11:20 AM. Log In. In 2007, Penna was one of the first YouTube channels to receive mainstream media coverage, including attention from DC Fox News,[7] after his video The Puzzle was featured on the front page of YouTube. In the same year he joined the board of directors of the Deutsche Bank in Frankfurt am Main. Joe Salama succeeds him as bank's Americas general counsel. A 2012 reform of the tax code stopped the practice, and the current debate centers on whether the trades were legal before that. Barclays Capital, and Deutsche Bank. Copyright 2023 "Finance Magnates CY Ltd." All Deutsche Bank's Top Executives Embroiled in German Tax Scandal The Deutsche Bank spokesman declined to comment. Please join me in thanking Stephan for his work and wishing Joe all the best in his new role. The bank issued tax certificates for withholding tax that had never been deducted and made loans to clients to allow them to participate in the scheme to claim tax rebates, according to the audits. In addition, the bank has significantly upgraded its skill-set across all AFC risk disciplines, making senior subject matter expert hires in different jurisdictions in order to address regulatory short-comings. Germany . The country "is moving cautiously because it simply fears that countries on the European periphery will stop reform measures if they see that Berlin is going to guarantee everything", he continued.[13]. Global Head of Litigation and Regulatory Enforcement. A Deutsche Bank executive is suing a son and a brother of Delaware Sen. Joe Biden for at least $10 million over a deal they had to buy into a hedge fund, according to court documents. [9] Shortly after uploaded, his "Guitar: Impossible" video was featured on the MSN.com front page. Some Deutsche Bank AG managers may have discussed the reputational risk of issuing withholding tax certificates at the center of a "cum-ex" share trading scheme, Reuters reported Jan. 4, citing an audit by Freshfields. The audits were prepared by Freshfields in Germany and London. Engage via Email. Ford selected Penna as a Fiesta Agent for the 2009 Ford Fiesta Movement. The tax certificates existed until 2017, when Deutsche Bank canceled them, two people with knowledge of the matter said. Pearson and Penna, the two Deutsche Bank traders, left to work for Ballance in 2009, when they became part owners, according to the Freshfields documents. Deutsche Bank 24 years 4 months Managing Director - Structured Finance - Head of West Coast Deutsche Bank . [11] Shortly after, Penna was selected as one of the top 10 new directors at the 20th Cannes Lions Saatchi & Saatchi New Directors' Showcase. The company also acted as a custodian and issued tax certificates needed for the deals, they said. Reuters received no response to two emails sent to his company. View Joe Pehar's profile on LinkedIn, the world's largest professional community. Barclays Capital, and Deutsche Bank. Privacy Notice Ballance controlled several entities which have been disbanded or renamed, according to filings with the Britains financial regulator, the Financial Services Authority, seen by Reuters. He declined to comment further. Deutsche Bank commissioned law firm Freshfields to write the five audits as part of an internal investigation into its role in cum-ex trading between 2006 and 2011. Deutsche Bank appoints U.S. general counsel to head anti - Nasdaq [4], Ackermann agreed at the end of 2009 to continue as chief executive of Deutsche Bank for another three years until 2013. Reuters has seen the Freshfields documents, as well as thousands of pages of bank files, correspondence and court documents relating to the cum-ex case. 100 colleges whose grads go on to earn the most The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. Joseph Salama - Global Head of Anti-Financial Crimes and AMLO Some Deutsche Bank managers may have discussed the reputational risk of issuing withholding tax certificates at the center of a He will report to Simon and split his time between New York and Frankfurt. Investment Bank Private Bank Awards Client logins Locations worldwide Mobile services Reports Responsibility Sustainability Sustainability Deep Dive Society Art, Culture & Sports Responsibility reports Focus topics Cloud Corporate venture capital Deutsche Bank at COP Digital disruption Entrepreneurial success Innovation network Responsible growth Manage Cookies, Deutsche Bank Execs Were Aware of Tax Fraud Scheme. Read More . Find your friends on Facebook. Will Covid-19 be an opportunity or threat to sustainable development? Like(s), Event Ballance also hired several other Deutsche Bank employees to work on the Cum-Ex deals. Joe Ravi // Shutterstock #89. For CEO Christian Sewing, whos trying to turn the tide at Germanys biggest bank after years of painful missteps, the escalation couldnt come at a more precarious time. S ince upping sticks from Dublin in 2012, the former Celebrity Big Brother star has been jet-setting around the world with her. Contact - Deutsche Bank Search Roles - Deutsche Bank Careers See here for a complete list of exchanges and delays. In numerical terms, the Fed's balance sheet has almost doubled during the pandemic to nearly $8tn. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. [13] A year later, Penna directed and starred in yet another commercial for the two companies. He resides in Los Angeles, California. Barclays Capital, and Deutsche Bank. content In recent years, Joe has negotiated almost all of our major AFC-related legal settlements and has been a key contact for our monitors as well as for regulators and enforcers worldwide. [6], According to the Financial Times Deutschland Ackerman earned 9.4million in 2009 and 8.8million in 2010. The German bank is embroiled in a probe into the cum-ex trades, a dividend-stripping technique used to avoid paying taxes. Joe Penna - Wikipedia Rating(s), 5 He was also a finalist in the "Oreo Global Moments" video competition. Deutsche Bank was aware of the tax fraud scheme Climate emergency: can green tech save us? A Corporate Bank as hub for corporate and commercial clients. What is your availability? Deutsche Bank Picks U.S. General Counsel to Head Anti-Financial - WSJ Joe Pena's Phone Number and Email Last Update. or. [16][17], In 2012, Penna co-wrote and directed an original interactive thriller series titled Meridian starring Orlando Jones and Rick Overton in conjunction with Fourth Wall Studios. Investments in improving data and technology continue. Bank provided services to clients exploiting tax loophole, Lender says it never directly participated in Cum-Ex deals. Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Two traders, Simon Pearson and Joe Penna, appear to have been the key figures involved in enabling the scheme to take place. Deutsche Bank Elevates Top Americas Lawyer to Trust Company Role. News. (Bloomberg) -- For over a decade, one of the biggest financial scandals in German history has been snaking its way through Deutsche Bank AG. [18], In August 2014, Penna was announced as the host of Xploration Earth 2050, a technology-oriented television series. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars worth of criminally derived money are laund Editing by Peter Graff, US Justice Dept warns of steeper penalties for firms that fall foul of messaging policies, Analysis: US Republicans aim to stymie gun sale codes at state level, Factbox: A look at proposed US state laws to curb new gun merchant code, Biden administration announces plan to stop water plant hacks, American Airlines, flight attendants union seek mediation in contract negotiations, Media report that UAE considering leaving OPEC not true - sources, Private equity firms lend less as demand cools, Nissan and Mexican workers agree to 9% raise at Morelos plant, union says, Brazil's Petrobras faces legal risks after halting asset sales -lawyers, Exclusive news, data and analytics for financial market professionals. Total losses from the Cum-Ex trade across Europe have been estimated at 55 billion; Joe Penna was a key figure in the Deutsche Bank unit financing the controversial transactions. PDF PDF (Q1 2018 results) PDF PDF (Ad-hoc release strategy) PDF PDF (Release strategy) PDF PDF (Q2 2018 segment and financial statements structure) XLS (Q2 2018 segment and financial statements structure) PDF PDF. A Deutsche Bank spokesman said that Deutsche Bank was involved in some of its clients cum-ex transactions and that it was fully cooperating with investigators. Reuters also contacted his spokeswoman by email, who did not respond. Joe Penna. Joe is currently based in Florida. Under his leadership, the AFC team has demonstrated significant progress in the fight against financial crime. esgSubNav, Discover more about S&P Globals offerings, Global Economies in Flux: Drive Decisions with the Purchasing Managers Index (PMI) Data, Staying Strong in Volatile Markets: How Banks Can Overcome Challenges to Funding and Lending, The Rising Importance of Sustainability in Credit Risk, 10:00 - 11:00 am EST | 4:00 - 5:00 pm CET. In October 2001, Deutsche Bank was the first German bank to list on the NYSE and one of the largest foreign-based employers in New York City.