Now Deutsche Bank is (Allegedly and Legally) Guilty in Greece Too

Sunday, March 07, 2010 , , , 0 Comments

 Pic credit: Banksy

Loathe to come to the defense of blood-thirsty banks and investment houses (the great vampire squid et al.), I'm reluctant to jump to conclusions but, um, this is nothing new. Hell, a bank you know probably bankrupted a city you are near or live in, America. Problem being there's nothing illegal about it, nowhere in our regulatory code does it say morality factors in. At all. So pick your jaw up off the floor and stop acting so shocked, there's nothing to stop the banks so why in the world would they?

Germany's Der Spiegel (the site that brought us Goldman rats bloody footprints leading out of Greece) speculated about the "very European" Greek debt solution proposed by EU leaders mid-February:

In a departure from normal banking-industry discretion, Deutsche Bank head Josef Ackermann said recently that his bank's share of Greek debt was "extremely small." It appears that mortgage banks, which invested heavily in Greek bonds, would suffer the most, say observers. Even should Greece avoid insolvency, these banks are still at great risk.

Now Deutsche Bank is defending its Greek business activities, with the same Der Spiegel reporting that DB partook in a "questionable" arms deal with Greece 7 years ago.


Deutsche Bank (DBKGn.DE) on Saturday denied a magazine report that its financing of a Greek trade deal seven years ago was "questionable."

Germany's Der Spiegel magazine reported that Deutsche Bank's London branch had organized a "legal, but extremely questionable" transaction in 2003 in an arms deal that was cosmetically favorable for Greek government finances.

"We deny the accusation of questionability," a Deutsche Bank spokesman said, adding that the deal involved normal goods trade financing.

Der Spiegel said that Germany's biggest lender had worked with Eurohypo, today a unit of Commerzbank (CBKG.DE), on the transaction.

It quoted a Eurohypo spokesman as saying that Eurohypo had made good on a claim of about 1 billion euros against the Greek government in 2003, which was then repaid last year.

Eurohypo. Win.

Anyway, where's Deutsche Bank now? Staying the hell away from Greece, that's for sure.

Follow Spiegel's English edition on Twitter @SPIEGEL_English

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.