A former Deutsche Bank executive suing the German lender for €152 million has taken his case to European banking regulators, asking them to scrutinize the bank's oversight practices and its current leadership.

Former Deutsche Bank Manager Escalates Legal Fight With Regulator Appeal

Dario Schiraldi sent a letter to the European Central Bank (ECB) requesting what he calls a "supervisory review" of Deutsche Bank, according to documents reviewed by Bloomberg News.

The move adds another front to Schiraldi's legal battle against his former employer, which he says destroyed his career after he got caught up in an Italian banking scandal.

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The letter zeroes in on Christian Sewing, who now runs Deutsche Bank as CEO. Back in 2013, Sewing oversaw an internal audit examining repo transactions Deutsche Bank had done with Banca Monte dei Paschi di Siena. Schiraldi and five other former Deutsche Bank employees say that review wasn't fair and unfairly blamed them for problems with the deals.

Italian Acquittal Fuels Damage Claims

Schiraldi worked as a senior manager in Deutsche Bank's asset and wealth management division when Italian prosecutors charged him and five colleagues in connection with Monte Paschi accounting issues. An Italian court convicted all six in 2019, but an appeals court in Milan threw out those convictions three years later, fully clearing them.

Now all six are suing Deutsche Bank in Frankfurt. Schiraldi filed his case last year, claiming the bank's handling of the 2013 audit wrecked his professional reputation and career prospects.

A Deutsche Bank spokesperson said the bank views these lawsuits as "entirely without merit" and plans to mount a strong defense. The ECB wouldn't comment on the letter.

Dual CEO Role Questioned

Schiraldi's lawyer raises concerns beyond the old audit. The letter questions whether Sewing should simultaneously hold the CEO position while also heading up legal and regulatory affairs at the bank. That setup violates basic separation of duties, the letter argues.

Deutsche Bank pushed back on that characterization. The spokesperson said Sewing took on both roles temporarily after another board member left, calling it "ordinary course of business." The bank notified regulators about the arrangement, which follows governance standards, according to the spokesperson.

The letter also takes aim at how Deutsche Bank reports its leverage exposure in financial statements, claiming the bank uses "aggressive netting" that makes its true leverage harder to see. Deutsche Bank says its netting practices match accounting standards and align with what other banks do.

Schiraldi's appeal to the ECB doesn't guarantee any action. The regulator doesn't typically comment on individual complaints or confirm whether it's looking into specific matters. But the letter signals Schiraldi isn't limiting his fight to German courtrooms; he's trying to get regulators involved too.