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

Oct. 30, 2019, 1:41 PM

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 ...