U.S Authorities Begin Probe Into Sustainable Investments Scam By Deutsche

(RTTNews) - Deutsche Bank's (DB) asset management subsidiary, DWS Group, is being investigated by U.S. authorities about claims made regarding its sustainable investing practices, according to a Wall Street Journal report.

The report stated that DWS Group's former head of sustainability had said that the company overstated how much sustainable investing criteria was made use of to manage its assets. The probe, which is being jointly conducted by the Securities and Exchange Commission and federal prosecutor, is in its early stages.

The report says that DWS had fooled investors about its sustainability efforts with the company facing issues in its environmental, social and governance investing strategy.

DWS's $1 trillion asset manager overstated the company's sustainable-investing efforts. Even though the company was facing problems with environmental and governance investing, it gave an impression of being a first-class company to its investors.

The probe by U.S authorities is considered to be a major roadblock for Deutsche Bank, which is the majority shareholder of DWS, a separately independent company in Germany. Deutsche Bank had tried to make many settlements with authorities and is also trying to get back into the customer's good books.