11 Deutsche Bank board members past and present just turned down bonuses of €38 million as ‘an act of solidarity’

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A statue is pictured in front of the former head quarters of Germany’s largest business bank, Deutsche Bank in Frankfurt, January 28, 2013.
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REUTERS/Kai Pfaffenbach

LONDON – Eleven members of Deutsche Bank’s management board waived bonuses of €38.4 million in an effort to draw a line under the lender’s financial scandals.

Deutsche Bank had withheld bonuses of €69.8 million to management board members after being “confronted with a number of supervisory investigations and regulatory penalties,” the bank said in an emailed statement on Thursday.

Of that amount, the members, both past and present, will receive €31.4 million.

“Despite the fact that the Management Board members are of the opinion that they always administered their office with due care and that they cannot be accused of any breach of duty, they have nonetheless voluntarily waived their entitlement to a total of 38.4 million Euro as an act of solidarity with Deutsche Bank,” Deutsche Bank said.

Germany’s biggest lender has struggled to put legacy legal issues behind it in a year of fines and investigations.

Earlier this year Deutsche Bank agreed to pay US and UK regulators $628 million to settle claims it failed to halt so-called “mirror trades” to launder as much as $10 billion out of Russia.

Meanwhile, shares plummeted close to 30-year lows in September last year after reports from the Wall Street Journal that the US Department of Justice was looking to impose a $14 billion fine for mortgage-backed security misselling in the run-up to the financial crisis.

The fine would have been more than the Deutsche Bank’s market capitalisation, sparking concerns from clients and investors alike about the bank’s financial stability. The DOJ settlement was eventually finalised at $7.2 billion.