In what can only be regarded as a shocking development, the United States is suing the former head of subprime mortgage trading at Deutsche Bank over “systematically and intentionally” lying about the quality of subprime mortgages that backed nearly $1.5 billion in mortgage-backed securities in the run-up to the crisis.
The lawsuit marks one of only a handful of times the government has gone after an individual for crisis-era mortgage fraud at the systemic level; an untold amount of MBS traders from this era still walk free.
Deutsche Bank AG and JPMorgan Chase & Co have agreed to pay a combined $148 million (114 million pounds) to end private U.S. antitrust litigation claiming they conspired with other banks to manipulate the yen Libor and Euroyen Tibor benchmark interest rates.
The preliminary settlements, totalling $77 million for Deutsche Bank and $71 million for JPMorgan, were detailed in filings late Friday in the U.S. District Court in Manhattan, and require a judge’s approval.
They followed similar settlements last year with Citigroup Inc and HSBC Holdings Plc totalling $23 million and $35 million, respectively.
Executives inside Deutsche Bank, Donald Trump’s personal bankers, are expecting that the bank will soon be receiving subpoenas or other requests for information from Robert Mueller, the special counsel who is investigating possible collusion between the Kremlin and the Trump campaign.
A person close to the matter who spoke to the Guardian on the condition of anonymity said Mueller’s team and the bank had already established informal contact in connection to the federal investigation.
Deutsche Bank AG is not allowed to share information it may have about President Donald Trump’s finances and his possible ties to Russia despite a request from U.S. lawmakers, the German lender told Congress on Thursday.
In a letter to five House Democrats, Germany’s largest bank said it was barred from sharing information about Trump’s finances due to U.S. privacy laws.
“We hope that you will understand Deutsche Bank’s need to respect the boundaries that Congress and the courts have set in an effort to protect confidential information,” lawyers for the bank from Akin Gump Strauss Hauer & Feld wrote in the letter.
The state of Maryland announced last week that it reached a $95 million settlement with Deutsche Bank over claims that Deutsche Bank misled investors about its securitization and sale of residential mortgage-backed securities and collateralized debt obligations during the run-up to the financial crisis.
The settlement, which was announced last week by the office of Maryland Attorney General Brian Frosh, includes a requirement that Deutsche Bank provide $80 million in relief to consumers in Maryland.
Deutsche Bank — Germany’s largest bank — has failed to respond to a request from Democrats on a U.S. House of Representatives panel for details about U.S. President Donald Trump’s possible ties to Russia, a Democratic staffer said on Sunday.
Several Democrats on the U.S. House Financial Services Committee sent a letter last month to John Cryan, Chief Executive Officer of Deutsche Bank, seeking details that might show if Trump’s loans for his real estate business were backed by the Russian government.
The letter asked for details of internal reviews of Trump’s transactions and gave the prominent German bank until Friday to respond. The bank’s response did not address any of the numerous questions posed in the letter and its Frankfurt headquarters declined to comment, as it has in the past.
“Deutsche Bank’s outside counsel has confirmed receipt of our May 23, 2017, letter but did not provide substantive responses to our requests,” a Democratic member of the staff told Reuters in an email on condition of anonymity.
The Federal Reserve Board on Tuesday announced a $41 million penalty and consent cease and desist order against the U.S. operations of Deutsche Bank AG for anti-money laundering deficiencies.
The actions were taken by the Board to address unsafe and unsound practices at the firm’s domestic banking operations. The Board identified failures by Deutsche Bank’s U.S. banking operations to maintain an effective program to comply with the Bank Secrecy Act and anti-money laundering laws.
A reminder that The Guardian reported that Deutsche Bank examined Trump’s account for Russia links in February’s article:
The scandal-hit bank that loaned hundreds of millions of dollars to Donald Trump has conducted a close internal examination of the US president’s personal account to gauge whether there are any suspicious connections to Russia, the Guardian has learned.
Deutsche Bank, which is under investigation by the US Department of Justice and is facing intense regulatory scrutiny, was looking for evidence of whether recent loans to Trump, which were struck in highly unusual circumstances, may have been underpinned by financial guarantees from Moscow.
The Guardian has also learned that the president’s immediate family are Deutsche clients. The bank examined accounts held by Ivanka Trump, the president’s daughter, her husband, Jared Kushner, who serves as a White House adviser, and Kushner’s mother.
The internal review found no evidence of any Russia link, but Deutsche Bank is coming under pressure to appoint an external and independent auditor to review its business relationship with President Trump.
House Dems sent to Deutsche Bank’s American CEO on May 23, 2017, and asked for a copy of the review and related documents: The full text of the letter.
Conglomerate HNA has upped its stake in the bank to 9.92 percent as a result of a voting rights announcement and share package worth £2.8billion (€3.4bn).
The Chinese have replaced the ruling family of Qatar al-Thani as the largest Deutsche Bankshareholder.
The bank’s British CEO John Cryan is attempting to rebuild Deutsche after tearing up his turnaround strategy after 17 months.
Deutsche Bank AG was hit with the Federal Reserve’s first major fine for failing to ensure traders abide by the Volcker Rule’s ban on risky market bets — and will also pay even more for letting currency desks chat online with competitors, allegedly revealing positions.
The simultaneous sanctions, totaling almost $157 million, fault lax oversight of traders that persisted into last year. The company — which raised $8.5 billion from investors this month to recapitalize — admitted to the Fed in March 2016 that it still lacked adequate systems for keeping tabs on dealings that might run afoul of the Volcker ban.
“Significant gaps existed across key aspects of Deutsche Bank’s Volcker Rule compliance program,” the Fed said Thursday, fining the firm $19.7 million for the lapses. As for chats, the bank failed to detect that currency traders engaged in “unsafe and unsound conduct,” disclosing some positions or talking about coordinating strategies, the Fed said. The company will pay $136.9 million for that.