Deutsche Bank’s DWS Slumps After U.S., Germany ESG Probe (1)

Deutsche Bank AG’s asset-management arm DWS Group slumped the most in almost 18 months after authorities in the U.S. and Germany began a probe into allegations that the firm exaggerated the environmental or social credentials of some ESG-labeled investment products.

BaFin, the firm’s local financial markets regulator and U.S. prosecutors are looking at recent claims made by DWS Group’s ex-sustainability chief, Desiree Fixler, that the firm declared more assets had been screened for ESG criteria than they actually had, according to people familiar with the matter.

DWS said it stands by its annual report disclosures and rejected what it ...