Merrill Lynch, Deutsche Bank Watched Cum-Ex Trades ‘Like Hawks’

Bank of America’s Merrill Lynch, Deutsche Bank AG and BNP Paribas SA were among major banks that closely monitored the flow of tax refunds “like hawks” in Cum-Ex trades made by customers, a lawyer who was heavily involved with the controversial practice told a German court.

The banks were briefed in detail about special funds established to facilitate and speed up tax refunds triggered by the deals, the man told a Bonn court on Oct. 29. Once the funds operated, Merrill Lynch and Deutsche Bank acted as prime brokers and BNP was among the custodian banks, the witness said. The ...