Parex Bank whistleblower John Christmas provided fraud information to the German regulator BaFin in May 2006. BaFin gave the information to the Latvian authorities even though Christmas explained that they already had the information.
BaFin could have confirmed that some of the fraud information was true in a few hours. However, BaFin chose to do nothing. As a consequence, Deutsche Bank will lose millions of lats. Also, German taxpayers are bearing some of the burden of bailing out Latvia.
The email below shows that BaFin received information about Parex from Christmas and gave the information to the Latvian authorities. The article below shows that Deutsche Bank owned some of the 52.8 million lats (twice as many dollars) subordinated debt of Parex.
pdf of email from BaFin to Christmas:
pdf snapshot of Deutsche Bank article from 11 April 2012:
link to Deutsche Bank article if the Latvian government hasn’t censored it yet:
http://www.baltic-course.com/eng/finances/?doc=25008&underline=dnb+nord&ins_print
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