The bank confirmed its cooperation with the authorities, emphasizing that it is being treated as a third party in the ongoing probe. While the Duesseldorf Public Prosecutor's Office declined to disclose specific details regarding the scope of the investigation or additional locations searched, citing strict tax confidentiality regulations, the focus appears to be on the controversial "cum-cum" trading strategy. This practice involves the shifting of shares around dividend payment dates to exploit tax loopholes and minimize dividend withholding levies.
In section Market Quotes
German Prosecutors Raid Deutsche Bank Over Postbank Tax Probe
German authorities descended on Deutsche Bank’s Frankfurt headquarters on Wednesday, marking the latest escalation in a long-running investigation into historical dividend tax practices. Prosecutors from Duesseldorf confirmed the operation, targeting transactions conducted through the Postbank unit between 2008 and 2010, shortly before the lender finalized its acquisition of the division.
Deutsche Bank has provided no further commentary on the raid, maintaining its stance that it is working fully with investigators. The inquiry highlights the lingering legal complexities surrounding the bank's integration of Postbank, a deal finalized in late 2010 that has repeatedly drawn regulatory scrutiny over the past decade.
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