Deutsche Loses, HSBC Said Looking To Pay Up Big, ING CEO Waives Bonus

Gavel

Reuters reports that Germany's top appeals court has ruled against Deutsche Bank in a case involving damages relating to the sale of interest swaps to a mid-sized corporate client.

The bank has now been ordered to pay $766,000 in damages, but more damagingly the court said that Deutsche had tailored the risk profile of the swap 'to the detriment of the investor', Ille Papier Service GmbH.

Bloomberg quotes Landesbank Baden-Württemberg analyst Olaf Kayser, who said: 'I think damages for Deutsche Bank are relatively limited, because the bank has already won or reached settlements for the majority of such cases. But these cases could damage the bank's reputation'.

The news agency also reports that HSBC is seeking to obtain the backing of shareholders to offer a pay deal for CEO Stuart Gulliver this year which could hit $22m, much of which, however, will be deferred.

Finally, the BBC reports that ING CEO Jan Hommen has waived his 2010 bonus of $1.6m, and instructed the firm's senior managers to do the same. The decision comes in the wake of criticism that Hommen received when it became known he had been awarded the bonus, even though ING still owes money to the Dutch taxpayer.

Hommen said in a statement: 'I am very sorry to note that the performance-related bonuses for the board over 2010 threaten to damage the recovering confidence from customers and the general public'.

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