RIYADH: Deutsche Bank AG turned the blame on an ex-client for crippling losses it suffered investing in risky foreign exchange derivatives the German lender sold, Bloomberg reported.
The bank said the Palladium Group was wrong to defend itself against the false sales allegations that lie at the heart of a 500 million euro ($565 million) lawsuit brought by the Spanish hotel chain last year.
Deutsche Bank denied all wrongdoing in the defense papers, filed in December, and named a string of ex-employees involved in the transactions, including star salesman Amedeo Ferri-Ricchi and former heads of Global FX Jonathan Tinker and Fabio Madar.
Complex currency trades that blew back on Spanish companies have prompted lawsuits and regulatory complaints against several major banks.
Deutsche Bank is now investigating whether some of its products were mis-sold.
Its internal probe, known as Project Teal, is looking at dozens of such deals and has led to settlements with clients.
It has also played a role in the departure of several employees and senior executives.
In the lawsuit, Ibiza-based Palladium Group alleged it entered into hundreds of extremely complex transactions with the German lender, which were impossible for Palladium to price, value or understand.
Deutsche Bank’s lawyers said that the family behind the group were sophisticated and experienced market participants with the ability and experience to understand the transactions.
