Deutsche Bank police raids included senior managers’ offices

A second day of police raids over suspected money laundering at Deutsche Bank included searches of the offices of each of the eight members of the management board, according to a person familiar with the matter.

With the bank’s leaders now drawn closer to the probe, its shares tumbled to a record low. Deutsche Bank’s supervisory board is due to convene on Tuesday for a regular meeting, and the bank’s latest gyrations are likely to be top of the agenda.

No current or former board members have been accused of wrongdoing, Deutsche Bank said late Friday. Authorities are looking into a cache of documents known as the Panama Papers that show a business based in the British Virgin Islands provided customers with a means to launder money, the bank said. Those operations were sold in March, it said.

The latest developments show that Christian Sewing, the bank’s fourth chief executive officer since 2015, is trapped in the same feedback loop of negative news, rising funding costs and declining revenue that foiled his predecessor, John Cryan.

Even after months of travel and meetings with staff and clients, Mr. Sewing, a 48-yearold Deutsche Bank lifer, has been unable to break out of what Chief Financial Officer James von Moltke called a “vicious circle.”

Mr. Sewing is pulling out all the stops to escape that circle. He has already replaced two members of the management board, former Chief Operating Officer Kim Hammonds and the head of asset management, Nicolas Moreau; Chief Regulatory Officer Sylvie Matherat may be the next to go, people familiar with the matter have said.

The Panama Papers refer to a collection of documents leaked in 2016 from Mossack Fonseca, a Panama-based law firm that created shell companies to facilitate tax avoidance. Deutsche Bank said its offices were raided as authorities examining those records look into whether employees aided or abetted money laundering.