Friday, May 6, 2016

Deutsche Bank investigated from Trani proxy for market manipulation – Il Sole 24 Ore

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This article was published May 6, 2016 at 8:24.
the last change is the May 6, 2016 at 10:55.

the Deutsche Bank of Frankfurt am Main is suspected of market manipulation from Trani proxy together with the ‘the former management of the German group. The investigation concerns the massive sale, for a total of about 7 billion Euros, the Italian government bonds during the first half 2011. In recent days, some soldiers of the Guardia di Finanza di Bari, along with pm Michael Ruggiero, performed the seizure of documents and e-mails in the banking Institute, Milan office, in the square of the calendar, and they collected the testimonies of some witnesses.

the suspects are five: the former president of Deutsche Bank Josef Ackermann, former co-CEOs Anshuman Jain and Jurgen Fitschen (now former chief co-director of the Bank), the former head office risks Hugo Banziger, former chief financial officer and former member of the board of Deutsche Bank, Stefan Krause.

To be heard as a witness would have been responsible for Deutsche Bank Italy, Flavio Valeri, president and managing director of the Management Board of Deutsche Bank Italy, unrelated to the ongoing investigations relating solely to the activities of the German headquarters of Bank. The prosecutor Ruggiero – as far as we know – believes that it is competent to investigate under Article 10 of the Criminal Procedure Code. According to this rule, in case of an offense committed entirely abroad by foreigners residing abroad, jurisdiction is the prosecutor who first entered the crime report.

The former management of the group is accused by the prosecution of market manipulation because, while talking to investors sustainability of Italy’s sovereign debt, hiding the same markets and the Italian Ministry of Economy the real intention of the bank to slash, and in the very short term (in the first half of 2011 ) the possession of the Italian debt securities in the portfolio at the end of 2010 amounted to eight billion euro. The massive sale of Italian government bonds to over seven billion euro by June 2011 – according to Trani pm – has altered the market value of securities because it was made in violation of the legislation in force.

According to the accusation, Deutsche Bank in three publications from February March 2011 defined sustainable Italy’s sovereign debt, but hid the financial markets his real intentions to immediately and drastically reduce the Italian portfolio securities. This desire of the Bank is instead – according to the prosecution – by the massive sale of Italian government securities made “over the counter” without it being disclosed to the financial market regulated and justified “falsely” a posteriori (in the informative periodical of June 2011 ) with the need to reduce the exposure of the group to Italy’s sovereign risk, following the acquisition of Postebank the end of 2010. During the same period, Deutsche Bank bought about 1.4 billion hedging Credit Default Swaps (CDS) on ‘exposure to Italian risk. These purchases – allegedly – were not disclosed by the banking group nor to the financial markets or to the MEF. So, is the prosecution’s reasoning, Deutsche Bank authorizing the sale of Italian government bonds, simultaneously acquiring CDS and communicating at the same time to the financial markets the sustainability of Italian public debt, has made manipulative conduct of information-operational market. These maneuvers are deemed suitable for altering the regular formation of the market price of Italian government bonds in both the first half of 2011 (when the market ignored the disposals of securities) as well as after regular publication in June 2011. On the latter occasion the market and operators – says the prosecutor Ruggiero – learned of massive and sudden reduction of the exposure of the bank to the Italian interpreting risk as a “clear signal of no confidence in the group against the Italian sovereign debt held.”

the Deutsche Bank mid-morning runs close to equal in Frankfurt in line with the trend of the Dax. Still no official reaction to the news of the German bank.

Also in Trani is an ongoing trial against the rating agencies Standard & amp; Poor’s and Fitch, also accused of market manipulation because, according to the prosecutor, through their artful assessments devoid of objective elements contributed in 2011 to destabilize the market for Italian government bonds and drive up the Italian spread.
The preliminary hearing judge Angela Schiralli indicted two managers Fitch and six S & amp; P.



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