SCANDAL ALERT: Deutsche Bank’s DWS SLAPPED with a Hefty €25 Million Fine in SHOCKING Greenwashing Scandal!
SHATTERED TRUST: DWS Misled Investors – Here’s the Inside Scoop!
In a jaw-dropping turn of events, Deutsche Bank’s asset management division, DWS, has been CRUSHED with a whopping €25 million fine by German prosecutors over an explosive greenwashing scandal! This bombshell follows extensive investigations in both the US and Germany that have rocked the financial world!
FALSE CLAIMS EXPOSED: DWS’s Alleged “Green” Credentials were ALL LIES!
According to Frankfurt prosecutors, DWS—owned 80% by Deutsche Bank—pulled the ultimate bait-and-switch on investors, touting an exaggerated reputation in green finance that was NOTHING but smoke and mirrors! With claims like “environmental, social, and governance is part of our DNA” and declaring itself a “leader” in the industry, it seems DWS was playing hard and loose with the truth!
The scandal erupted after former ESG head Desiree Fixler blew the whistle, alleging major discrepancies in DWS’s 2020 annual report, claiming the assets labeled as “green” were vastly overstated.
MARKET CRASH: Investors SENT PACKING as Shares PLUMMET!
The fallout was immediate and brutal. In 2021, when the US Securities and Exchange Commission initiated its investigation, shares in DWS took a nosedive, erasing a staggering €1 billion in market value in a SINGLE DAY!
Flash forward to 2023, DWS had agreed to fork over $19 million to settle the SEC’s charges, marking the largest penalty ever imposed against an investment adviser for ESG-related offenses.
But the shocking revelations didn’t stop there! The German prosecutors uncovered that the deceit continued well into 2023, long after the departure of former CEO Asoka Wöhrmann, who left in disgrace in 2022—and walked away with a jaw-dropping €13.7 million payout!
Criminal Investigations STILL Ongoing – Who’s Next?
Prosecutors are not done yet, with criminal investigations against specific individuals still simmering in the background. They’ve kept tight-lipped on who will face the music next, leaving everyone on edge! Meanwhile, a separate probe into DWS’s questionable actions is still in the works with German financial watchdog BaFin.
DWS’s Response: We’ve Changed Our Ways (Sort Of)
In a desperate attempt to move forward, DWS has acknowledged that “marketing was sometimes exuberant” in the past and insists it has revamped its internal controls and documentation. They claim the €25 million fine WON’T impact their quarterly results, thanks to preemptive financial measures. But investors aren’t so sure! Shares dipped 1.2% on Wednesday following the bombshell announcement!
Buckle up, folks! This is a developing story that shows the dark side of finance, and you won’t want to miss what comes next!
photo credit: www.ft.com
