Deutsche Bank seeks damages from four former employees over Monte Paschi scandal

Deutsche Bank is going on offense. The German banking giant has filed a counterclaim against four former senior employees, seeking approximately $636 million in damages tied to the long-running Monte dei Paschi di Siena scandal. The move is a direct response to the ex-employees’ own lawsuit, which demands over £600 million, roughly $800 million, for what they claim is irreparable reputational harm. The roots of a very expensive grudge To understand this legal brawl, you have to rewind to the period between 2008 and 2012. Monte dei Paschi di Siena, the world’s oldest bank (founded in 1472), was allegedly hiding around €2 billion in losses. The method of concealment involved complex derivatives transactions conducted with the help of Deutsche Bank and Nomura. In November 2019, a Milan court convicted 13 individuals connected to the scheme, including executives who had worked at Deutsche Bank. Then, in 2022, those convictions were overturned. The counterclaim: Deutsche Bank fires back The four former employees at the center of this latest round had sued Deutsche Bank, arguing that the institution used them as scapegoats. Their position is that Deutsche Bank knowingly participated in t...