Deutsche Bank pays out £156m as it settles Vestia derivative case
Troubled German lender Deutsche Bank has paid out €175m (£156m) in a settlement with Holland’s largest public housing corporation, Vestia.
The Dutch group is to drop its legal case at the High Court after revealing on its website today that Duetsche Bank would financially settle the long-running row.
Read more: Deutsche Bank – saved in the nick of time?
Vestia had accused Deutsche Bank of improperly selling interest rate derivatives.
Six years ago the affordable housing firm found itself in serious financial trouble after making major losses on derivates it had bought from investment banks including Deutsche Bank.
The payout comes at an untimely moment for Deutsche, which is embarking on a radical cost-cutting overhaul that involves 18,000 job cuts and the closure of its loss-making equities business.
It has also emerged this week that the German bank is reportedly being investigated by the US department of justice over whether it violated anti-money laundering laws in its work with the Maylasian state fund 1MDB.
Read more: US Department of Justice probes Deutsche links with 1MDB
According to the Wall Street Journal, US officials are understood to be probing the German lender over its ties with the 1MDB investment vehicle between the years of 2009 and 2015, when billions of dollars were looted and spent on items including luxury yachts and expensive pieces of art.