U.S. federal prosecutors are investigating billions of dollars of trades Deutsche Bank AG made on behalf of Russian clients as recently as this year, according to people with knowledge of the situation.
The Justice Department’s criminal probe, which hasn’t been previously reported, focuses on so-called mirror trades, these people said. Such trades may have allowed Russian clients to move funds out of the country without properly alerting authorities, a person familiar with the situation has said.
The new inquiry adds to the wave of legal woes challenging Germany’s largest bank, which has been buffeted by multiple investigations, resignations of top executives and a leaked confidential document in which German regulators alleged senior officials were aware of traders’ efforts to manipulate markets.
Aug 3 Wall Street’s industry-funded watchdog on Monday asked Deutsche Bank to pay $3 million in compensation damages to Jorge Usandivaras, the former head of its Latin American Strategic Transactions unit.
Usandivaras had initially filed for $45 million in compensatory damages, claiming the bank had breached his employment contract and acted in violation of U.S. labor laws.
He also claimed that Deutsche Bank had acted in contravention to the Sarbanes-Oxley Act that protects whistleblowers.
The Financial Industry Regulatory Authority (FINRA) found Deutsche Bank liable to pay damages. (bit.ly/1E4zPde)
Citigroup Inc., the third-largest U.S. bank by assets, is being investigated by the Consumer Financial Protection Bureau over its student-loan servicing practices, a person with direct knowledge of the matter said.
Citigroup is cooperating with the probe, the New York-based firm said Monday in a filing that didn’t disclose which regulator was involved. That agency is the CFPB, said the person, who asked not to be identified discussing an ongoing investigation.
The inquiry may result in penalties or having the bank offer restitution to customers, and echoes an enforcement action against at least one other institution, according to the filing, which didn’t name the other firm. Spokesmen for Citigroup and the CFPB declined to comment.
Annual scorecard has now ranked the lender last for four years in a row
Rankings are based on 2014 performance of the nation’s 20 biggest banks
Massive settlement with government was major drag on BofA’s earnings last year
At a time when Bank of America CEO Brian Moynihan is feeling ongoing pressure to improve the lender’s financial performance, a new report scores it last in that area once again.
Among the nation’s biggest banks, the Charlotte-based lender ranks at the bottom of Bank Director magazine’s latest bank-performance scorecard. The rankings, released late last week, are based on last year’s profitability, capitalization and asset quality for 20 lenders with assets of $50 billion or more.
It marks the fourth year in a row Bank of America has been in last place among lenders with $50 billion or more in assets. In 2011, when the scorecard did not have separate rankings based on asset size, Bank of America was No. 127 among the 150 largest publicly traded U.S. banks and thrifts.
As in the previous year’s scorecard, the largest banks performed the worst in this year’s rankings. Citigroup and JPMorgan Chase & Co. ranked second-to-last and third-to-last, respectively. JPMorgan is the nation’s largest bank by assets, followed by Bank of America, Citigroup and Wells Fargo.
New York’s top banking regulator on Monday indefinitely suspended Promontory Financial Group from some consulting work, saying the firm had watered down and compromised its compliance efforts for U.K. bank Standard Chartered PLC.
Promontory said it plans to take the New York Department of Financial Services to court to fight the suspension, which would be a rare legal challenge to the authority of the New York banking regulator. The department has been aggressive over the last two years in combating what it sees as conflicts of interest at consulting firms like Promontory that work for New York-regulated banks.
And yet the banksters get to sleep soundly in their bed with no jail time. The ex-trader is nothing but a small fish….
Ex-trader Tom Hayes was sentenced to 14 years in jail by a London court on Monday after being found guilty of conspiring to rig Libor benchmark interest rates following a seven-year global investigation.
After a nine-week trial and seven days of deliberations, the jury of five women and seven men found Hayes, a 35-year-old former UBS (>> UBS Group AG) and Citigroup (>> Citigroup Inc) trader, guilty of all eight counts of conspiracy to defraud.
In the first trial of a defendant accused of Libor rigging, Hayes had faced up to 10 years imprisonment for each count of conspiracy over the manipulation of London interbank offered rate (Libor), a crucial benchmark for around $450 trillion of financial contracts and consumer loans, between 2006 and 2010.
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