50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

U.S. probes Deutsche Bank's DWS over sustainability claims -WSJ

Published 08/25/2021, 08:33 PM
Updated 08/25/2021, 08:40 PM
© Reuters. The new logo of Deutsche Bank's DWS Asset Management is pictured at their headquarters in Frankfurt, Germany, March 19, 2018. REUTERS/Ralph Orlowski
DBKGn
-

(Reuters) - U.S. authorities are investigating German lender Deutsche Bank (DE:DBKGn)'s asset management arm DWS Group after the firm's former head of sustainability said it overstated how much it used sustainable investing criteria to manage its assets, the Wall Street Journal reported on Wednesday.

The probes, by the U.S. Securities and Exchange Commission (SEC) and federal prosecutors in Brooklyn, New York, are in early stages, the newspaper said https://www.wsj.com/articles/u-s-authorities-probing-deutsche-banks-dws-over-sustainability-claims-11629923018?mod=latest_headlines, citing sources.

A DWS spokesperson told Reuters the firm does not comment on litigation or regulatory matters.

Deutsche Bank and a spokesperson for the U.S. Department of Justice declined to comment on the WSJ report, while an SEC spokesperson said: "The SEC does not comment on the existence or nonexistence of a possible investigation."

The SEC, the top U.S. markets regulator, earlier this year https://www.reuters.com/article/us-usa-sec-climate/u-s-markets-regulator-deploys-team-to-target-climate-esg-misconduct-idUSKBN2AW2KH established a task force to root out misconduct related to environmental, social and governance (ESG) issues. With a record $51 billion flooding into sustainable U.S. funds in 2020 alone, according to Morningstar, investors need to be better informed, the SEC has said.

© Reuters. The new logo of Deutsche Bank's DWS Asset Management is pictured at their headquarters in Frankfurt, Germany, March 19, 2018. REUTERS/Ralph Orlowski

Deutsche Bank has been trying to restore its image in Washington amid several investigations into its dealings with U.S. President Donald Trump, a longtime client.

In January, the firm agreed https://www.reuters.com/article/deutsche-bank-corruption-united-states-i/deutsche-bank-to-pay-nearly-125-million-to-resolve-u-s-bribery-metals-charges-idUSKBN29D2OO to pay nearly $125 million to avoid U.S. prosecution on charges it engaged in foreign bribery schemes and manipulated precious metals markets, the latest blow for the bank as it tries to rebound from a series of scandals.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.