Deutsche Bank has confirmed that Robert Karofsky, the bank's New York-based co-head of global sales and trading, has taken leave of absence for personal reasons.
Karofsky, 43, was part of a team of 8 traders the firm hired from Morgan Stanley in 2005.
The New York Post has reported that, according to its sources, the trader has stepped down over an affair he allegedly had with the wife of a senior trader who reports into him. Things are said to have come to a head at work last week, when the angry trader is said to have confronted his boss, and has not spoken to him since. The newspaper says that Karofsky confirmed when he was at work that he was in the middle of a 'sensitive matter', and Deutsche Bank said that it 'does not comment on personal matters'.
In the meantime. Deutsche has denied a New York Post report that retiring investment bank co-head Michael Cohrs had a pop at private equity firms during a 90 minute 'farewell conference call' to staff earlier this month'. Cohrs is said to have complained that the bank was forced to book loan losses on private equity deals post mid-2007, and is believed to have been angry that the private equity firms wouldn't share the bank's pain.
Finally, Bloomberg reports that a US federal judge has ruled that Deutsche's Jon-Paul Rorech, a bond and credit-default swap salesperson, did not illegally disclose inside information on a bond sale to a hedge fund manager. Rorech's attorney Richard Strassberg said that the judgement 'proved what Mr Rorech always maintained - at all times he acted consistently with Deutsche Bank's policies and with industry practices'. The judge kicked out the SEC case, and said that the information in question wasn't even confidential.
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