Actually, the Deutsche Bank is not involved in the first criminal case for the Cum-Ex scandal, which is currently being negotiated at the Bonn Regional Court. But on this Thursday, one of the defendants heavily charged the bank.
It is about billions, which were withdrawn from the German state by dubious share transactions for years. In front of the Bonn district court, the deals that have become known under the keyword Cum-Ex are currently being worked on. Two British bankers are charged with particularly serious tax evasion.
One of them, Nicholas D., said that Deutsche Bank's London branch did not only know about cum-ex-deals, but even approved them.
They ran through the financial advisory firm Ballance. Ballance Capital is a conglomerate of many individual companies based in the UK, the Cayman Islands, Gibraltar or the British Virgin Islands. The company was founded in 2008 by Paul Mora and co-accused in Bonn Martin S. The two men had previously operated at the Bavarian HypoVereinsbank Cum Ex business. They were joined by two former employees of Deutsche Bank.
"Branch office" of Deutsche Bank
Nicholas D. now stated that there had been "a very close link" between Deutsche Bank and two units of Ballance, that Ballance had been virtually a "branch office" of Deutsche Bank. Dealers of Ballance had sent many transactions to Deutsche Bank in London, where they had been approved.
Asked by the chairman of the judge whether Deutsche Bank received fixed profit from these deals, Nicholas D. said he knew it was. He had never seen such agreements.
In the industry Ballance was in those years as "equity finance arm of the German bank". This is how e-mails are written that stock traders wrote to each other and the ZEIT ONLINE.
Last year, ZEIT ONLINE, DIE ZEIT and the ARD magazine Panorama reported on two reports prepared by the law firm Freshfields 2015 on behalf of Deutsche Bank. At that time, the bank wanted to know to what extent its London branch was involved in cum-ex transactions after the financial crisis.