The Strategist

Deutsche Bank pays over €10M compensation to Spanish wine producer

06/29/2021 - 03:58

Deutsche Bank has agreed to pay one of the world's largest wine producers, J.Garcia Carrion (JGC), more than €10m in compensation for imposing financial services misunderstood by the winery's employees, The Financial Times reported this, citing its own sources.

jwalsh via flickr
jwalsh via flickr
According to the newspaper, the German bank has agreed to pay compensation to several more of its customers without publicly announcing it.

Deutsche Bank launched an internal investigation last year after it received complaints from several clients about the imposition of complex foreign currency derivatives by bank employees. 

Under EU law, financial institutions are obliged to protect their clients from transactions with instruments that are unclear to clients, making them unable to assess the risk of dealing with them. 

The internal investigation led to the dismissal of Louise Kitchen, head of Deutsche Bank's Asset Disposal Unit, and Jonathan Tinker, co-head of global foreign exchange markets. Two traders directly involved in the troubled operations also left the bank.

The newspaper notes that JGC has made similar claims against two other banks, Goldman Sachs and BNP Paribas.