Probe involving Demagogue's Wing Secretary
In a recent development, the U.S. Securities and Exchange Commission (SEC) and the Federal Financial Supervisory Authority (Bafin) are investigating the sustainable investment products of asset manager DWS.
This investigation follows a series of reports, including one by The Wall Street Journal on August 1, which highlighted potential problems with DWS's Environmental, Social, and Governance (ESG) strategy. The German publication Süddeutsche Zeitung had also previously reported that Deutsche Bank's subsidiary may not have been as far along in terms of sustainability as it claimed.
The investigation is focused on examining whether DWS has overstated the extent of its sustainable investments and neglected evaluation criteria for sustainable investments.
In response to these allegations, DWS has issued a statement affirming its commitment to sustainable investment. The statement, available at the provided link, asserts that DWS is fully committed to sustainable investment within the framework of its fiduciary responsibility. The statement also emphasizes DWS's commitment to sustainable investment in the name of its customers.
Unfortunately, the investigation has taken a toll on DWS's share price. On Thursday, the DWS share price plummeted by almost 14 percent to around 36.50 euros at the close of Xetra's main trading session. The share of the parent company, Deutsche Bank, also fell by 2.2 percent and was one of the biggest losers in the Dax.
It is important to note that the statement issued by DWS rejects allegations made by a former employee, Asoka Wöhrmann. However, the public prosecutor's office in Frankfurt has discontinued the investigations against him regarding greenwashing allegations.
As the investigation by U.S. authorities and the Federal Financial Supervisory Authority (Bafin) is ongoing, more information about the investigations and previous reports can be found in the provided links.
We will continue to monitor this situation and provide updates as more information becomes available.
