Banks: Cologne Clique? Brothel affair burdens bank managers and supervisors of Volksbank Köln Bonn
When the head of risk management was not in the office, its representative, CEO Pütz, approved the €5 million loan for "Pasha". The supervisory board also played a questionable role.
In September 2021, the Volksbank Köln Bonn acquired a large bordello for five million euros, sparking internal concerns. Christian Gervais, a colleague of Neutgens responsible for such transactions, vetoed the deal, questioning the purchaser's credibility. Despite this, the bank proceeded with the loan, which was secured by a primary mortgage on the prestigious "Pascha" tower, with attractive interest rates. The bank saw the business as attractive, regardless of the red-light factor.
Almost five years later, Neutgens is currently on leave, and the bank has hired Flick Gocke Schaumburg to investigate the case. A team led by Professor Dieter Leuering is reviewing documents and conducting interviews. The investigation is expected to be completed by the end of August. According to the Handelsblatt, the story reveals a bank with significant compliance and governance issues.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
