Deutsche Bank's Cum-Cum Probe: Third Search in Frankfurt and 54 Bank Risks

Germany's Federal Prosecutor's Office conducted Deutsche Bank's third search in Frankfurt this year, focusing on alleged 'cum-cum' transactions conducted by Postbank between 2008-2010. These transactions involved foreign investors temporarily transferring shares in German companies to local banks before tax payment dates. The method aimed to reduce or eliminate a single tax liability. Deutsche Bank had previously disclosed paying 29 million euros in 2025 for cum-ex transactions, but no similar payment was mentioned for cum-cum operations. Germany's Federal Financial Supervisory Authority estimated that 54 banks may have participated in cum-cum transactions, with potential liabilities exceeding 4 billion euros. The latest search was linked to an investigation into Deutsche Bank's handling of transactions involving Russian oligarch-linked companies between 2013-2018 and whether it delayed suspicious transaction reporting. Deutsche Bank began integrating Postbank in 2017, completing the process in 2024. The searches occurred during Christian Sewing's tenure, a period characterized by Deutsche Bank's efforts to recover from past losses and legal disputes. The bank had announced record profits last year, with shares tripling over the past three years.

Germany's banking sector faces customer confidence erosion amid ongoing cum-cum transaction probes. This could negatively impact the country's financial stability. Deutsche Bank may need to adopt a stronger defense strategy against such investigations in the future.