Prosecutors search Deutsche Bank offices for client transaction evidence

From reuters.com

German prosecutors have raided Deutsche Bank offices in Frankfurt in a search for evidence related to client securities transactions, as Germany's largest lender struggles to break free of regulatory issues that contributed to an overhaul of its top leadership this week. A source familiar with the situation said Tuesday's raid was tied to a tax rebate strategy by some of the bank's clients known as "dividend stripping", in which a stock is bought just before losing rights to a dividend, then sold, taking advantage of a now-closed legal loophole which allowed both the buyer and the seller to reclaim capital gains tax. ... (full story)