FRANKFURT/MADRID (Reuters) – The Spanish supervisor has fined Deutsche Bank 3 million euros ($3.32 million) after applying significantly higher spreads on clients’ repurchase of structured bonds issued by the German lender and failing to disclose it.
On Monday, the Spanish government said in its official bulletin that the fine related to a very serious infringement without identifying the name of clients or the potential case it was referring to.
Deutsche said it would appeal against the fine.
According to government’s gazette, the German lender had not applied the required measures to manage the “existing conflict of interest in the repurchase from clients of structured bonds issued by Deutsche Bank Group, applying significant spreads compared to their fair value of which customers were not informed.”
The German lender said it had acted correctly in this situation, “applying conflict of interest management policies and taking additional measures in accordance with the regulations in force at the time of the events inspected.”
($1 = 0.9048 euros)
(Reporting by Tom Sims in Frankfurt and Jesús Aguado in Madrid; Editing by Louise Heavens)
