Banks that settle government investigations often receive an outside monitor to ensure that they make good on their promises to reform.
Deutsche Bank AG now has five.
To resolve the Justice Department’s investigation over its mortgage-backed securities business, the bank agreed Tuesday to a $7.2 billion penalty, more than half of which will provide relief to consumers hurt by its conduct. To check its remediation work, the bank agreed to hire an independent monitor, Michael Bresnick, a former prosecutor.
The monitoring job brings Bresnick full circle. He was a Justice Department lawyer who helped start the task force that investigated Deutsche Bank and many other U.S. and European banks. The probes led to multibillion-dollar settlements with the banks — which created work for monitors like Bresnick, who’s now with the law firm Venable LLP.
Bresnick and a Deutsche Bank representative declined to comment on his appointment. Chief Executive Officer John Cryan apologized for the conduct when the settlement was announced earlier Friday, saying the bank had exited many of the underlying activities and has improved its standards.