Deutsche bank employee arrested over bribery claims

Sunset in Tokyo, Japan

An employee of Deutsche Bank’s Japanese brokerage unit was arrested Thursday on suspicion of bribery as the securities watchdog recommended penalties against the firm for excessive entertainment spending.

Bloomberg reports that a director of Deutsche Securities' pension solution sales department, is suspected of entertaining a client at a Mitsui unit in exchange for purchases of investment products, a Tokyo Metropolitan Police official said, asking not to be named in accordance with its policy. A former Mitsui pension executive was also detained, the official said.

The unit of the bank broke Japanese rules by providing special benefits to three pensions, the Securities and Exchange Surveillance Commission said in a statement in Tokyo Thursday, without naming the funds. The firm spent a total of $62,000 entertaining the clients on about 100 occasions from 2010 to 2012, the commission said.

'It’s clear that the brokerage broke the rules, and that’s serious,' said Mamoru Nagano, a professor of economics and international finance at Seikei University in Tokyo. 'But the total amount spent was small and I was surprised that this led to arrests. My concern is that any crackdown may undermine dynamism in Japanese financial markets.'

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Deutsche Bank Tokyo Employee Arrested as Firm Faces Penalty

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