German prosecutors searched Deutsche Bank's Frankfurt headquarters on the 22nd. The investigation concerns suspected fraudulent transactions at its Postbank unit between 2008 and 2010, and Deutsche Bank is cooperating with the authorities. According to sources, so-called cum-cum trades, where shares are traded around dividend payment dates, are considered a form of tax evasion. These trades were rampant during the financial crisis and are estimated to have cost billions of euros in lost tax revenue. Last week, Germany's Federal Financial Supervisory Authority, BaFin, said the industry as a whole could face a burden of around 7 billion euros due to suspected involvement of financial institutions in cum-cum and related cum-ex trades.
Deutsche Bank AktiengesellschaftProsecutors searched Deutsche Bank headquarters over suspected fraudulent cum-cum trades at Postbank unit, and BaFin warned industry could face €7 billion burden.