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HomeBusinessDeutsche Bank’s DWS under investigation over using sustainable investment

Deutsche Bank’s DWS under investigation over using sustainable investment

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Deutsche Bank asset manager, DWS, is under investigation by the US Securities and Exchange Commission.

The investigation revolves around how DWS used tenable investment criteria to manage its assets, two experts said on Thursday.

Wall Street Journal was the first to break the news that sent DWS stocks down by nearly 13% in the morning trading session.

According to Reuters, the two experts did not reveal their names, as the matter is an ongoing investigation.

DWS and Deutsche Bank refused to comment.

This case will be observed carefully and closely by the asset management if it continues.

The fund managers have promptly accumulated billions of dollars of assets they expect would have an environmental or social aspect.

However, they’re facing growing analysis over how companies define and apply ESG standards.

ESG standards refer to environmental, social and governance standards.

SEC investigation

Early this month, the SEC investigation followed a report by the Wall Street Journal that cited the ex-head of sustainability at DWS.

He said the investment company exaggerated its use of tenable investment criteria to manage investments.

The former manager left DWS earlier this year, after less than 12 months in the job.

“The SEC does not comment on the existence or nonexistence of a possible investigation.” SEC spokesperson said.

The Wall Street Journal also cited other unnamed sources who said the federal prosecutors in Brooklyn, New York were investigating the matter.

The spokesperson of the US Department of Justice refused to give any comments to the WSJ report.

Deutsche Bank has been growing in its tenable finance business.

Additionally, it’s seeking to redeem its image in Washington after several investigations over its dealings with Trump.

Furthermore, DWS is the second German fund to face US regulatory analysis.

Allianz has also faced DOJ and SEC investigation last year over losses in its fund division, Allianz Global Investors.

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