DEUTSCHE BANK SAYS FORMER EXECS TO PAY FOR WRONGDOING

Deutsche Bank’s board chairman is telling shareholders the bank is seeking “substantial” amounts of money from former executives in charge when the bank engaged in costly misconduct. Paul Achleitner told shareholders at the annual meeting Thursday the board is in advanced talks and expects “there will be an outcome that secures a substantial financial contribution from those involved.” He didn’t name names. Deutsche Bank agreed to a $7.2-billion settlement with the U.S. Justice Department over its role in bonds backed by house mortgages in 2005-2007. If Deutsche Bank reaches settlements with the former executives, it would mark a significant step in efforts to break with a turbulent period. Such settlements are fairly rare, according to Michael Kramarsch, an expert on executive compensation and managing partner of consultancy HKP Group. “This is a moment where the compensation regime in banks kicks in in full drastic and dramatic force,” Kramarsch said. “This is what banking compensation regulation was designed for, as cynical as it sounds.”