Christian Sewing, the Chief Executive Officer of Deutsche Bank, is confronting renewed examination regarding his involvement in a decade-old investigation into risky derivative trades during his tenure as chief auditor, according to Reuters.
This scrutiny arises from a €152 million ($178 million) lawsuit filed by Dario Schiraldi, a former Deutsche Bank employee, which alleges mismanagement of an internal audit into complex transactions with Italian lender Monte dei Paschi (MPS).
The legal action, scheduled for hearing in a Frankfurt court this December, centres on Sewing’s oversight of a 2013 internal investigation into derivatives deals that were subsequently scrutinised by Italian and German regulators.
Schiraldi’s claim asserts that the bank’s actions, including the audit supervised by Sewing, detrimentally impacted his professional reputation and earnings potential. The lawsuit further contends that junior bankers were unfairly singled out for blame while senior management, including Sewing in his capacity as chief auditor, allegedly concealed their tacit approval of the lucrative but high-risk transactions.
The disputed derivatives trades, which date back to the period following the global financial crisis, involved complex structures that Italian prosecutors initially alleged were used to conceal substantial losses at Monte dei Paschi. In 2019, an Italian court convicted Schiraldi and five other former Deutsche Bank bankers, alongside the bank itself, for colluding with MPS. However, this conviction was overturned in 2022, resulting in acquittals for all parties.
A central element of Schiraldi’s legal argument is that the internal audit had a “predetermined outcome” and relied on only a limited selection of available documentation. His legal team has successfully obtained the release of several million emails and documents during discovery, which they claim in a March 2025 court filing reveal significant flaws in the bank’s investigative process.
Deutsche Bank has vigorously disputed the allegations, stating in response to Reuters’ inquiries that the claims are “false” and represent “an attempt to generate publicity by seeking to cause serious harm to the good reputation of executives.” The bank affirms that the original audit was both “thorough and independent” and that all executives involved “discharged their responsibilities appropriately.”
The bank’s supervisory board has expressed support for Sewing and the management team in contesting the litigation. Chairman Alexander Wynaendts stated earlier this month:
The facts of this long-standing matter are well known and have been discussed in detail over the past decade. The Supervisory Board supports the Management Board in defending the bank against this litigation.
