{"id":33212,"date":"2022-06-02T05:57:05","date_gmt":"2022-06-02T05:57:05","guid":{"rendered":"https:\/\/harchi90.com\/head-of-deutsche-banks-dws-steps-down-after-greenwashing-raids\/"},"modified":"2022-06-02T05:57:05","modified_gmt":"2022-06-02T05:57:05","slug":"head-of-deutsche-banks-dws-steps-down-after-greenwashing-raids","status":"publish","type":"post","link":"https:\/\/harchi90.com\/head-of-deutsche-banks-dws-steps-down-after-greenwashing-raids\/","title":{"rendered":"Head of Deutsche Bank&#8217;s DWS steps down after &#8216;greenwashing&#8217; raids"},"content":{"rendered":"<div>\n<p data-testid=\"primary-image-caption\" id=\"primary-image-caption\" class=\"text__text__1FZLe text__medium-grey__3A_RT text__regular__2N1Xr text__small__1kGq2 body__base__22dCE body__caption__3L8vY article-body__primary-image-caption__WHVnb\">The new logo of Deutsche Bank&#8217;s DWS Asset Management is pictured at their headquarters in Frankfurt, Germany, March 19, 2018. REUTERS \/ Ralph Orlowski<\/p>\n<div class=\"registration-prompt__container__2jf5K column article-body__aside-registration-prompt__2ivER\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h6 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_6__1qUJ5 heading__base__2T28j heading__heading_6__RtD9P registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h6>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<\/div>\n<div>\n<div class=\"article-body__context_widget__1xxEe article-body__element__2p5pI\">\n<div class=\"context-widget__content__1X4Oq\">\n<ul class=\"summary__summary__31feP\">\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__body__yKS5U body__base__22dCE body__body_alt__2kEQu summary__point__NO-2F\">DWS investigated over alleged greenwashing<\/li>\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__body__yKS5U body__base__22dCE body__body_alt__2kEQu summary__point__NO-2F\">Prosecutors raided DWS and Deutsche Bank on Tuesday<\/li>\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__body__yKS5U body__base__22dCE body__body_alt__2kEQu summary__point__NO-2F\">DWS shares down 24% since August last year<\/li>\n<li data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__body__yKS5U body__base__22dCE body__body_alt__2kEQu summary__point__NO-2F\">Whistleblower says more heads should roll<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p data-testid=\"paragraph-0\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">FRANKFURT, June 1 (Reuters) &#8211; The chief executive of top German asset manager DWS (DWSG.DE) will step down next week, he said on Wednesday, a day after raids by prosecutors over allegations that the company misled investors about &#8220;green&#8221; investments.<\/p>\n<p data-testid=\"paragraph-1\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The raids and departure of DWS CEO Asoka Woehrmann mark another setback for Deutsche Bank (DBKGn.DE), DWS&#8217;s majority owner, which has been trying to move on from regulatory breaches, including money laundering and securities misselling, leading to billions in fines.<\/p>\n<p data-testid=\"paragraph-2\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">DWS has been dogged by the accusations for months, prompting German prosecutors to raid DWS and the headquarters of Deutsche Bank on Tuesday.  read more <\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI article-body__inline-registration-prompt__1-N9W\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p data-testid=\"paragraph-3\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">As firms market their environmental, social and governance-related (ESG) credentials in an attempt to tap the trillions of dollars looking to have climate- and socially-friendly impact, regulators are beginning to dig deeper into their claims.  read more <\/p>\n<p data-testid=\"paragraph-4\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">German and US officials have been investigating reports and a whistleblower&#8217;s allegations that DWS had exaggerated the green credentials of investments it sold &#8211; a practice known as greenwashing.  DWS has repeatedly denied that it misled investors.<\/p>\n<p data-testid=\"paragraph-5\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The DWS&#8217;s top management change had been in the works for some time but was ultimately made at meetings late on Tuesday in the wake of the raids, a person with direct knowledge of the matter said.<\/p>\n<p data-testid=\"paragraph-6\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Woehrmann told employees in a memo that it was a joy to see DWS flourish but that &#8220;allegations &#8230;, however unfounded or undefendable, have left a mark&#8221;.<\/p>\n<p data-testid=\"paragraph-7\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;To quote Charles Dickens: it was the best of times, it was the worst of times,&#8221; he said in the memo, which was seen by Reuters.<\/p>\n<p data-testid=\"paragraph-8\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Deutsche Bank, which retained majority ownership of DWS after its initial public offering, has marketed itself as bank companies can turn to as they seek a greener future.<\/p>\n<p data-testid=\"paragraph-9\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Desiree Fixler, the whistleblower involved in the investigation, told Reuters that the resignation was positive but it did not go far enough.<\/p>\n<p data-testid=\"paragraph-10\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;It&#8217;s not just a one man change,&#8221; she said.<\/p>\n<p data-testid=\"paragraph-11\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;There&#8217;s the greenwashing, and there&#8217;s the cover up. It&#8217;s a huge culture issue at Deutsche Bank,&#8221; she said.<\/p>\n<p data-testid=\"paragraph-12\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">DWS and Deutsche Bank declined to comment on Fixler&#8217;s remarks.<\/p>\n<h2 data-testid=\"Heading\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g-\">UNCERTAINTY<\/h2>\n<p data-testid=\"paragraph-13\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">On Tuesday, German prosecutors said that &#8220;sufficient factual evidence has emerged&#8221; to show that ESG factors were taken into account in a minority of investments &#8220;but were not taken into account at all in a large number of investments&#8221;, contrary to statements in DWS fund sales prospectuses.<\/p>\n<p data-testid=\"paragraph-14\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The US Securities and Exchange Commission and German financial watchdog BaFin last year launched separate investigations into the whistleblower allegations.<\/p>\n<p data-testid=\"paragraph-15\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The SEC did not respond to a request for comment, but the US watchdog has been ratcheting up its efforts to police claims companies make about their ESG investments.<\/p>\n<p data-testid=\"paragraph-16\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The agency proposed a pair of rules last week that would detail how ESG funds can be marketed and how to properly disclose the thinking behind labeling such a fund.  SEC Chairman Gary Gensler has said the agency&#8217;s efforts are aimed at standardizing disclosures around such funds and ensuring investors have reliable information.  read more <\/p>\n<p data-testid=\"paragraph-17\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The whistleblower, Fixler, a former head of sustainability at DWS, had said the company overstated how it used sustainable investing criteria to manage investments.<\/p>\n<p data-testid=\"paragraph-18\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">In February, Deutsche Bank agreed with the US Department of Justice to extend the stay of a special monitor at the bank after it failed to report allegations involving DWS in a timely manner.  read more <\/p>\n<p data-testid=\"paragraph-19\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Shares in DWS have slumped 24% since the SEC and BaFin investigations were made public in August last year.  They were down about 5% late on Wednesday.<\/p>\n<p data-testid=\"paragraph-20\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The accusations show &#8220;greenwashing is not a trivial offence,&#8221; said Magdalena Senn of the German consumer advocacy group Finanzwende.<\/p>\n<p data-testid=\"paragraph-21\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;The raid and the resignation will have a signal effect for other asset managers,&#8221; she said.<\/p>\n<p data-testid=\"paragraph-22\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Credit Suisse analysts said Woehrmann&#8217;s departure was a disappointment because he successfully implemented reform and turnaround at DWS.<\/p>\n<p data-testid=\"paragraph-23\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;We see the change of leadership heralding a period of uncertainty for DWS &#8216;strategy &#8211; and could even raise questions over its future as an independent asset management company,&#8221; Credit Suisse said.<\/p>\n<p data-testid=\"paragraph-24\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">DWS and Deutsche Bank on Tuesday said that the asset manager had cooperated with regulators and authorities in the past and would continue to do so.<\/p>\n<h2 data-testid=\"Heading\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g-\">UNDER PRESSURE<\/h2>\n<p data-testid=\"paragraph-25\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Woehrmann has been under pressure on multiple fronts since the greenwashing allegations broke.<\/p>\n<p data-testid=\"paragraph-26\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Deutsche Bank conducted an internal investigation into Woehrmann&#8217;s possible private email usage for business purposes, and the European Central Bank also looked into corporate governance issues surrounding him.<\/p>\n<p data-testid=\"paragraph-27\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">He also received threatening letters, including one in December with red crosshairs, white powder and a racial slur.  read more <\/p>\n<p data-testid=\"paragraph-28\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">When asked about the allegations in a DWS earnings call with analysts, Woehrmann said he emphatically rejected all the allegations.<\/p>\n<p data-testid=\"paragraph-29\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Deutsche Bank CEO Christian Sewing publicly backed Woehrmann in January, and on Wednesday thanked him for &#8220;his impressive work and performance&#8221;.<\/p>\n<p data-testid=\"paragraph-30\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Stefan Hoops, who has been overseeing Deutsche Bank&#8217;s corporate banking division since 2019, will replace Woehrmann from June 10, the bank said.<\/p>\n<p data-testid=\"paragraph-31\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Woehrmann&#8217;s resignation takes effect on June 9, the day of its annual general meeting.<\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__default__UPMUu sign-off__text__PU3Aj\">Reporting by Paul Carrel, Tom Sims and Frank Siebelt;  Additional reporting by Anna Pruchnicka and Pete Schroeder Editing by Bradley Perrett, David Goodman, Jane Merriman, Sabine Wollrab and Marguerita Choy<\/span><\/p>\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Our Standards: The Thomson Reuters Trust Principles.<\/p>\n<\/div>\n<p>    .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new logo of Deutsche Bank&#8217;s DWS Asset Management is pictured at their headquarters in Frankfurt, Germany, March 19, 2018. REUTERS \/ Ralph Orlowski Register now for FREE unlimited access to Reuters.com Register DWS investigated over alleged greenwashing Prosecutors raided DWS and Deutsche Bank on Tuesday DWS shares down 24% since August last year Whistleblower &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/head-of-deutsche-banks-dws-steps-down-after-greenwashing-raids\/\"> <span class=\"screen-reader-text\">Head of Deutsche Bank&#8217;s DWS steps down after &#8216;greenwashing&#8217; raids<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[429,77,78,79,80,8264,81,1008,24,1596,25,1597,1011,12675,15742,3550,16100,3551,3063,58,1009,74,2303,84,85,1598,434,2534,435,438,4766,439,258,1602,13342,1604,1600,735,16099,1593,3555,1817,8265,87,511,1819,1603,2298,284,285,75,53],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/www.reuters.com\/resizer\/aDaQBYMVAxmBNXF3S5vaHv1hulo=\/1200x628\/smart\/filters:quality(80)\/cloudfront-us-east-2.images.arcpublishing.com\/reuters\/N3RDAJEYKRPBPBWXBT5VXRTO3M.jpg","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/33212"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=33212"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/33212\/revisions"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=33212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=33212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=33212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}