During the international financial turmoil of late 2008, executives at financing giant Deutsche Bank took action to forestall a nearly half-billion-dollar loss for a client, Italy’s Banca Monte dei Paschi di Siena – the globe’s oldest banking institution. In a chronicle that reads like a financial noir, journalists Vernon Silver and Elisa Martinuzzi describe in detail an unorthodox scheme by Deutsche Bank to hide losses for Monte dei Paschi using complex derivative transactions. As of early 2017, government regulators and the courts are still investigating and prosecuting a criminal scandal, which has led to Monte dei Paschi’s government takeover, Deutsche Bank’s loss of industry credibility, a suicide and perhaps a murder. For executives seeking a fascinating narrative of deception and financial alchemy, getAbstract recommends this compelling report.
In this summary, you will learn
- How Deutsche Bank became embroiled in an Italian banking scandal,
- How Deutsche Bank’s fraudulent practices damaged its reputation, and
- How the incident has transformed the company and the lives of the participants.
About the Authors
Vernon Silver and Elisa Martinuzzi are journalists for Bloomberg Businessweek.