Deutsche Bank fears it faces fines, legal action and the possible prosecution of “senior management” because of its role in a $20bn Russian money-laundering scheme, reports The Guardian.
In a confidential internal report, the troubled lender concedes that the scandal has hurt its “global brand” – and is likely to cause “client attrition”, loss of investor confidence and a decline in its market value.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The episode saw Russian criminals with links to the Kremlin, the old KGB and the FSB, shift as much as $80bn into the western financial system. Shell companies in the UK “loaned” money to each other and defaulted on the fictional debt.
Deutsche Bank came into the frame when it was used to launder money through its corresponding banking network. This meant it was effectively funnelling illegal Russian payments to the European Union and Asia.
In a difficult time for the German bank, there have been police raids on its Frankfurt HQ over the Panama Papers, its share price has plunged and there has been talk of a possible merger with Germany’s Commerzbank.
Commenting on the latest news, Raw Story describes Deutsche Bank as “Donald Trump’s favourite” lender and says it fears it will be “hammered”.
Last month, the New York Times found that bosses at Deutsche Bank saw major “red flags” surrounding President Donald Trump’s financial affairs but kept funding him because the connection helped bring prestige to their institution.
It said Trump and the bank are “deeply entwined, their symbiotic bond born of necessity and ambition on both sides: a real estate mogul made toxic by polarising rhetoric and a pattern of defaults, and a bank with intractable financial problems and a history of misconduct”.
-
The Week contest: Primate peckPuzzles and Quizzes
-
Paddington: The Musical – a ‘funny, feel-good, family-friendly’ showThe Week Recommends The cast take a ‘well-known story’ and ‘melt your heart’ with this triumphant production
-
Political cartoons for December 4Cartoons Thursday’s political cartoons include a nap for Donald Trump, rage bait of the year, artificial intelligence turning on its master and more
-
Is Europe finally taking the war to Russia?Today's Big Question As Moscow’s drone buzzes and cyberattacks increase, European leaders are taking a more openly aggressive stance
-
Pushing for peace: is Trump appeasing Moscow?In Depth European leaders succeeded in bringing themselves in from the cold and softening Moscow’s terms, but Kyiv still faces an unenviable choice
-
Femicide: Italy’s newest crimeThe Explainer Landmark law to criminalise murder of a woman as an ‘act of hatred’ or ‘subjugation’ but critics say Italy is still deeply patriarchal
-
Brazil’s Bolsonaro behind bars after appeals run outSpeed Read He will serve 27 years in prison
-
South Africa wraps up G20 summit boycotted by USSpeed Read Trump has been sparring with South Africa in recent months
-
Trump pushes new Ukraine peace planSpeed Read It involves a 28-point plan to end the war
-
Americans traveling abroad face renewed criticism in the Trump eraThe Explainer Some of Trump’s behavior has Americans being questioned
-
Nigeria confused by Trump invasion threatSpeed Read Trump has claimed the country is persecuting Christians
