Deutsche Bank May Face ECB Probe Over Dealings in Its Own Bonds
- Regulator is said to look at dealing in additional Tier 1 debt
- A formal probe would add another distraction for CEO Sewing
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Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Deutsche Bank AG faces another potential clash with regulators as the European Central Bank weighs whether to open a formal investigation into unapproved purchases of its own subordinated bonds.
The ECB is looking at Deutsche Bank’s buying of the notes over several years up until 2017, when it got approval for future deals, according to people familiar with the matter. Because the securities are designed to help banks absorb losses when they run into trouble, the regulator needs to sign off on any repurchases.