Four Deutsche Bank Employees Jailed

Deutsche Bank Headquarters

Four of the five Deutsche Bank employees arrested for money laundering or obstruction of justice related to a carbon trading scheme will remain in jail, the Frankfurt prosecutor said on Thursday.

Reuters reports that one Deutsche Bank employee was allowed home on health grounds, the prosecutor said.

The employees were arrested during raids on Germany's flagship lender on Wednesday.

It is too early to conclude whether the raids, by 500 tax inspectors, police and prosecutors, would yield any new evidence, Frankfurt prosecutor Guenter Wittig said, adding, 'This will take months. I cannot comment about an ongoing investigation'.

BBC News reports that last year, a German court jailed six men over a $391m fraud selling carbon emission permits through Deutsche Bank.

They bought the permits overseas and paid no tax, then resold the permits to each other to claim back tax illegally.

Under EU rules, limits are set on the amount of carbon dioxide companies emit, and those polluting less can sell 'credits' to those that need more.

Four Deutsche Bank employees jailed on Thursday

Deutsche Bank offices raided in carbon tax fraud probe

Best place to workThe Best Firm of the Last Decade is...

Register for Financial Markets News Alerts