The Financial Times reports that Deutsche Bank has cut ties to the Austrian property developer over concerns about his involvement in a sprawling corruption investigation. Germany’s biggest bank ended its business relationship with René Benko. This embattled Austrian real estate billionaire co-owns Selfridges in London, the Chrysler Building in New York, and German department store, KaDeWe. Benko is a suspect in a huge corruption case in Austria.
In October 2022, Austrian prosecutors named Rene Benko as a suspect in a big corruption investigation in
Austria that led to the resignation of the country’s prime minister Sebastian Kurz, a close confidant of Benko, in 2021. Benko’s involvement in the case became public after police raided the headquarters of his Signa in Innsbruck. The prosecutor’s office has sent the results of its investigation to the Austrian Ministry of Justice where a decision will be made on whether to file charges. It is widely expected that Sebastian Kurz and his confidants will be indicted. Rene Benko and Signa Group denied any wrongdoing in relation to the investigation.
The move to cut ties with Benko comes as Deutsche Bank seeks to reduce its exposure to clients that might come with reputational risk.
