Deutsche Bank pays €175m to settle case with Dutch affordable housing provider
Stichting Vestia says Deutsche Bank was was responsible for bribery over derivatives trades
London — Deutsche Bank settled a lawsuit from a Dutch affordable-housing provider that said the lender was responsible for bribery over derivatives trades.
The bank paid €175m to settle the case with no admission of liability, it said on Friday in a statement. The deal brings an end to a long-running court battle that had featured testimony from a middleman who hass confessed to bribery, and tales of expensive sushi, “bubbly” wine and meals at a Michelin-starred restaurant.
In the London suit, Stichting Vestia — a housing provider that nearly collapsed as a result of derivatives losses totaling more than €2bn — sought to recoup some of the money, saying some of those derivatives transactions were “flawed”. That’s because the bank paid fees to a middleman when it entered into derivatives trades with the housing group, Vestia said. The bank said during the trial that the middleman seemed to be a legitimate intermediary.
“With this settlement agreement, this dispute between Vestia and Deutsche Bank comes to an end,” Deutsche Bank said in a statement.
“We are satisfied with the result,” Vestia said in a statement. The $197m sum “is a substantial amount and makes a good contribution to the financial recovery”.
The case is just one of a lengthy list of legal issues that Deutsche Bank is grappling with. The US department of justice is investigating the bank as part of a broadened probe of Malaysia’s scandal-plagued 1MDB investment fund.
The Vestia trial started in early May and had been scheduled to last until July 18.