Financial industry – Deutsche Bank struggles in Spain – Economy

Deutsche Bank sold financial instruments to a Spanish hotel chain, which resulted in losses in that country. This greatly expands the group of clients who have lost money in currency hedging transactions. Palladium Group, an Ibiza chain that owns Spain’s former foreign minister Abel Matutes Juan, has reported losses on complex currency derivatives it bought from Deutsche Bank in recent years. She is now discussing with her lawyers the extent to which she could recover funds from Deutsche Bank, the company said in a statement.

Palladium is one of 50 to 100 cases that Deutsche Bank is examining more closely in an investigation called Project Teal, the Bloomberg news agency writes with reference to Insider. It is still not clear how much money this client lost. According to reports, however, this is one of the most important cases. The purpose of the research is to clarify how Forex traders and distributors sold these products to clients who may not have fully understood them. The situation of the hotel group is comparable to that of the Spanish winemaker J. Garcia Carrion, said a spokesperson for the hotel company. JGC had also reported losses with similar products. The bank must therefore pay the wine merchant more than ten million euros.

According to SZ information, Deutsche Bank tasked law firm Herbert Smith Freehills with the investigation, which more or less completed the project. As a result, the bank separated from the employees, more recently from the head of the Bad Bank. It is still not clear how much money the house will have to pay back and whether there will be fines. The investigation is also so uncomfortable for the institute as business will likely last until 2019 and 2020. Meanwhile, CEO Christian Sewing was responsible for investment banking on the board of directors.

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