Germany's financial watchdog, BaFin, has suspended three senior partners at Berenberg, a Hamburg-based private bank, citing suspected corporate governance breaches. This intervention follows indications unearthed during the 2025 annual audit, particularly concerning market transactions of unclear origin and accounting irregularities intended to flatter profits. The investigation into these issues was reportedly hindered by a lack of transparency from the bank.
In response to the suspensions, BaFin has appointed Hans-Walter Peters, Berenberg's former long-serving chief executive, and Michael Horf, a former executive board member at Degussa Bank, as special commissioners. Peters stated that this move was necessary to uphold integrity, a core value for Berenberg, emphasizing that the breaches did not impact client business or cause any client harm. The bank has assured that these management changes will not affect day-to-day operations or current employment.
Despite the irregularities, Berenberg anticipates reporting a net profit of approximately €20 million for 2025 and a strong result of about €40 million for the first half of 2026. However, the 2025 financial statements are still awaiting finalization and signature post-audit. The bank manages roughly €40 billion in assets and employs 1,500 staff, with 400 based in London, and will need to focus on restoring regulatory confidence.
