Deutsche Bank co-operates with Taiwanese loan investigation

3 April 2007

Deutsche Bank has said it is co-operating with Taiwan financial bodies' investigations into whether correct procedure was followed regarding a $205 billion loan to Broadband Wireless Communications.

Reports in local media said that Taiwan's Financial Supervisory Commission is investigating the loan, after Broadband Wireless Communications' parent company Asia Pacific was hit by financial turmoil over the collapse of the Rebus group.

It is thought that one area that FSC is especially keen to explore is whether Deutsche would have been in position to take over the company if it had defaulted on the loan.

Meanwhile, further question marks hang over reports in a Chinese newspaper that up to $36 billion of the loan went to the Wang family, which had previously controlled the group.

Michael West, spokesman at Deutsche bank, told Reuters: "In light of some uninformed [comment] in the market, we welcome the FSC review with which we are fully cooperating."

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