FRANKFURT, March 24 Deutsche Bank is
bracing for more than 300 million euros ($390 million) in
charges linked to suspected violations of U.S. sanctions on
Iran, a German weekly reported on Sunday.
Deutsche Bank, Europe's biggest bank by assets, on Wednesday
increased its provisions for litigation by 600 million euros to
2.4 billion euros, citing mortgage-related lawsuits and other
Without specifying its sources, magazine Der Spiegel said
the money set aside could be a sign U.S. investigations of
possible Iran-linked transactions had reached an advanced stage.
Deutsche Bank on Wednesday declined to lay out in detail why
it had increased provisions. On Sunday, it would not comment on
the magazine report.
The U.S. government is cracking down on foreign banks it
accuses of undermining its effort to throttle Iran's economy. In
the most prominent case, London-based Standard Chartered
last year agreed to pay $667 million to settle charges
it violated sanctions against Iran and other
Other lenders in the crosshairs of U.S. investigators
include Commerzbank, Unicredit division HVB,
and HSBC in Britain.
Der Spiegel said that apart from the Iran probe, Deutsche
Bank's 2.4-billion-euro legal provisioning included 500 million
for a probe of suspected manipulation of interbank lending
Several sources familiar with the investigation told Reuters
on Thursday that German markets watchdog Bafin is set to rebuke
Deutsche Bank over how it supervised its contribution to the
setting of the lending rates.