If you measure President Donald Trump’s conflicts of interest by the amount of money at stake, or the variety of dicey interactions with government regulators, one dwarfs any other: his relationship with Deutsche Bank.
In recent weeks, Deutsche Bank has scrambled to reach agreements with American regulators over a host of alleged misdeeds. But because the president has not sold his company, the bank remains a central arena for potential conflicts between his family’s business interests and the actions of officials in his administration.
“Deutsche poses the biggest conflict that we know about in terms of dollar amounts and the scale of legal exposures,” says Brandon Garrett, a University of Virginia law professor and author of “Too Big To Fail: How Prosecutors Compromise with Corporations.” In trying to clear up its outstanding regulatory troubles, the bank “may have tried to do its best to avoid the appearance of impropriety but it may be impossible for them to do so.”
The Department of Justice is pursuing former personnel who worked for Deutsche Bank in the years before the financial crisis, according to an exclusive report from Reuters.
While author Joy Wiltermuth refers to targeted staffers as those “who worked in Deutsche Bank’s mortgage unit in the run-up to the financial crisis,” the indication is that Justice is going after former mortgage bond salespersons.
Deutsche Bank AG, Germany’s largest lender, has apologized in full-page German newspaper ads for misconduct that has cost the company billions.
The ad, signed by CEO John Cryan on behalf of the bank’s top management, ran Saturday in the Frankfurter Allgemeine Zeitung and the Munich-based Sueddeutsche Zeitung.
The bank said its past conduct “not only cost us money, but also our reputation and trust.
Deutsche Bank AG will pay $425 million to settle an investigation by New York’s financial-services watchdog into violations of the state’s anti-money-laundering laws through a so-called “mirror trading” scheme that transferred $10 billion out of Russia, the Department of Financial Services said Monday.
The bank “missed key opportunities to detect, intercept and investigate” the scheme, according to DFS, in which companies that were clients of its Moscow equities desk issued orders to purchase Russian blue-chip stocks in rubles, while a related party would sell the same stock for the same price in the same amount through the bank’s London branch.
A Justice Department investigation into the Russian trades has been ongoing, and it is unclear if or when a settlement might be reached.
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.
Late last year, Deutsche Bank announced that it reached a $7.2 billion settlementwith the Department of Justice in connection with the bank’s issuance and underwriting of residential mortgage-backed securities between 2005 and 2007.
Although the bank made the announcement in late December, the settlement was not official, but it is now.
On Tuesday, the Department of Justice announced that it reached a final settlement with Deutsche Bank for $7.2 billion, matching the figure Deutsche Bank disclosed in December.
Law360, New York (January 4, 2017, 8:20 PM EST) — Deutsche Bank AG will fork over $95 million to end the U.S. government’s suit accusing it of trying to avoid paying taxes by setting up shell companies, according to a settlement approved Wednesday in a New York federal court.
The settlement comes after the government sued Deutsche Bank in December 2014 for allegedly engaging in a tax evasion scheme by setting up shell companies to hide profits on the appreciation of stock that the bank purchased in 1999. (AP) The settlement, which received the stamp of…