Deutsche Bank has reached an agreement with the US judiciary – and pays a gigantic sum for it. The allegations are grave.
Deutsche Bank clears other legal legacies in the USA with multi-million dollar comparisons. The largest German financial institution pays around 130 million dollars (106 million euros) in a compromise with the Justice Department and the SEC on allegations of bribery in certain foreign transactions and manipulation in trading with precious metal contracts, as the Ministry announced in Washington. In return, criminal proceedings are suspended. The “New York Times” had previously reported on a possible comparison.
Due to a lack of internal controls, Deutsche Bank allowed its bookkeeping to be fudged for seven years to cover up bribes and other improper cash flows, the Justice Department said. In addition, traders have tried over a period of five years to fraudulently manipulate the US financial markets.
“Even if we can not comment on the details of the comparisons, we take responsibility for these events that occurred between 2008 and 2017,” said Deutsche Bank in a statement. The affairs have been thoroughly investigated, and the company has fully cooperated with the Justice Department and the SEC. The bank has taken significant measures and spent a lot of money to improve its processes.
Allegations: Among other things, bribe deal in Abu Dhabi
The allegations of the US authorities are violations of the anti-corruption law “Foreign Corrupt Practices Act”, with which the US can pursue allegations of bribery beyond its own national borders. Specifically, a bribe deal in 2010 is mentioned in the court files, in which business advantages in Abu Dhabi were to be obtained through intermediaries. At Deutsche Bank, the project was called “Project X” internally.
The second part of the comparison concerns price manipulation by some Deutsche Bank finance professionals in trading precious metal contracts. Among other things, a practice often referred to as “spoofing” is said to have been used, in which purchase orders are only faked on the market in order to manipulate prices. A few months ago, the US bank JPMorgan
As early as 2019, the financial institution agreed on a payment of 16 million US dollars. At that time it was about dubious attitudes in Russia and China, which should bring the Deutsche Bank some lucrative contracts.