Reportedly, Deutsche Bank has guarded its menace and control system following proxy adviser ISS (Institutional Shareholder Services) called for financiers to vote in opposition to the board. The influential proxy counseled its members to vote in opposition to “discharge” Deutsche’s panel, the vote of confidence beneath the German corporate code. A vote against release is a powerful way for the financiers to express their condemnation at the board’s annual general meeting. It highlighted the series of scandals causing the bank’s failure to maintain AML (anti-money laundering) controls as causing monetary and reputational damage that has been borne by investors.
In a statement, Deutsche stated that the ISS report “does not reproduce the present situation of our bank and its organized environment. The vast greater part of the legacy cases cited date back to the time before 2016.” The bank further added, “While we admit that there is still work at the forefront of us, we have considerably advanced our risk and control systems in the past 3 Years and we would persist to do so.” Deutsche also disputed that its share price must not be used to hint financial instability, alleging it has a “quite robust balance sheet plus a high capital ratio, plenty liquidity, and tough asset quality.”
Recently, Deutsche Bank was in news for being accused of corruption in a London lawsuit. Stichting Vestia—a Dutch affordable-housing provider almost crashed as an outcome of derivatives losses—is suing Deutsche Bank, stating that the bank is accountable for bribery. Vestia alleges that the bank remunerated $3.9 Million (3.5 Million Euros) in expenses to First in Finance Alternatives, a Dutch company. Approximately, 1.75 Million Euros of that amount went to Marcel de Vries—Vestia’s treasury and control manager—who single-handedly managed Vestia’s derivatives trading.