BNY Mellon, Warburg Group, Deutsche Bank to pay $60 million in ‘cum-ex’ case By Reuters
Economy 12 minutes ago (Sep 19, 2022 10:20)
© Reuters. FILE PHOTO: The logo of Germany’s Deutsche Bank is on display ahead of the bank’s annual shareholder meeting in Frankfurt, Germany, May 23, 2019. REUTERS/Kai Pfaffenbach/File Photo
(Reuters) -Bank of New York Mellon Corp, Germany’s Warburg Group and Deutsche Bank (ETR:DBKGn), will pay 60 million euros ($59.85 million) to German tax authorities over the country’s “cum-ex” tax scandal, the German lender said on Monday.
“Cum-ex” refers to a scheme under which banks and investors would swiftly trade shares of companies around their dividend payout day, blurring stock ownership and allowing multiple parties to falsely reclaim tax rebates on the dividends.
Deutsche Bank will share in the payment to be made by Bank of New York Mellon (NYSE:BK), a Deutsche spokesperson said in an emailed statement, adding that the breakdown of the payment is subject to a confidentiality agreement between the parties.
The payment covers tax liabilities of a fund called BC German Equity Special Fund, which a Warburg subsidiary managed as an investment company in 2009.
The custodian bank was BHF Asset Servicing, German daily Handelsblatt reported on Sunday, which was later acquired by the U.S. bank, while Deutsche Bank eventually absorbed its previous owner investment firm Sal. Oppenheim.
Deutsche Bank will contribute an amount of less than 10 million euros to the payment, Handelsblatt said.
BNY Mellon said the Handelsblatt report contained inaccuracies and false misrepresentations. Deutsche bank said the final amounts may still be reduced in light of any third-party payments, without giving further details on the payment.
The Warburg Group did not immediately respond to a request for comment.
The scandal has blighted German political and financial circles for several years, with lawmakers claiming it has cost taxpayers billions of euros.
A large number of banks have been searched by prosecutors investigating possible wrongdoing, with German branches of Barclays (LON:BARC), Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) among those raided in recent months.
Government officials say the investigation involves some 100 banks on four continents and at least 1,000 suspects.
($1 = 0.9985 euros)
BNY Mellon, Warburg Group, Deutsche Bank to pay $60 million in ‘cum-ex’ case
(Reuters) -German buyers on Monday briefly reserved capacity to receive Russian gas via the Nord Stream 1 pipeline for the first time since the line was shut down three weeks ago,…
By Wayne Cole and Alun John SYDNEY/LONDON (Reuters) – Shares slipped and the dollar firmed on Monday as investors prepared for a packed week of central bank meetings which will…
(Corrects to add dropped words in headline) By Shreyashi Sanyal (Reuters) -French shares dragged European markets lower on Monday after two major TV groups fell on abandoning…
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.