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DOJ Launches Criminal Investigation Into Deutsche Bank Russian Trades
Deutsche Bank just can’t seem to get out of its own way and indeed, it’s becoming increasingly clear that when it comes to malfeasance, the German lender is without equal.
Just days after WSJ revealed that the bank’s $2.5 billion LIBOR settlement could be in jeopardy due to the apparent mishandling of chat records dating back to 2005 (which, incidentally, is when Anshu Jain instituted a new seating arrangement that placed LIBOR submitters next to traders), Bloomberg says Loretta Lynch’s Justice Department has launched a criminal probe into the bank’s alleged role in facilitating a series of trades which may have allowed Russian clients to launder billions through the bank's trading desks.
The "mirror trades" in question aren’t terribly complicated and indeed, it appears as though they would have been quite easy to identify if you knew what you were looking for. Here’s Bloomberg:
The trades under investigation involve stocks bought by Russian clients in rubles through Deutsche Bank, and simultaneous trades through London in which the bank bought the same securities for similar amounts in U.S. dollars, people familiar with the matter have said.
Got it. So basically, Deutsche Bank moved some money out of the country for a few Russians.
Here’s what the bank had to say about the trades in its latest interim report:
Deutsche Bank is investigating the circumstances around equity trades entered into by certain clients with Deutsche Bank in Moscow and London that offset one another. The total volume of the transactions under review is significant. The ongoing internal investigation includes a review as to whether violations of law, regulation or policy have occurred, as well as a review of Deutsche Bank's related internal controls. Deutsche Bank has advised regulators and law enforcement authorities in several jurisdictions (including Germany, Russia, the UK and US) of this investigation. Deutsche Bank has taken disciplinary measures with regards to certain individuals in this matter and will continue to do so with respect to others as warranted.
But as one analyst in Hamburg notes, "the sums we’re talking about aren’t peanuts," which means this isn’t going to be swept under the rug before every regulator from New York to Moscow extracts its fair share of protection money from the bank.
As for the Justice Department, Loretta Lynch’s ongoing effort to prove how serious the US is about prosecuting criminality on Wall Street has led to at least one other open investigation involving Deutsche Bank. As we noted in "DoJ To Tax Wall Street (Again) In MBS Probe," the DoJ is now pursuing a fresh round of MBS-related settlements with banks that knowingly packaged and sold shoddy CDOs, cementing Lynch’s role as the person in charge of shaking down Wall Street for government protection money, and Deutsche Bank is among the targets.
Amusingly, the New York DFS (which is investigating whether the bank might have deliberately scrubbed an "unknown number" of LIBOR chats from its system) is also looking into the Russian trades. Here’s Bloomberg again:
Those mirror trades have also come under scrutiny of New York’s banking regulator, a person familiar with the matter has said. The state’s Department of Financial Services has asked Deutsche Bank for e-mails, memos, client lists and other documents as it looks into whether those trades were used to help Russian clients skirt U.S. sanctions laws, according to the person. The DFS also asked for information about whether any of the bank’s other operations, including those in New York, were connected with the trades, the person has said.
So in other words, once Deutsche Bank has finished explaining to the DFS how, despite its best efforts, it just can’t seem to find all of the LIBOR-related DB Chat messages regulators are interested in reviewing, the bank will get around to digging up any "e-mails, memos, and other documents" it can (or can’t) locate related to the mirror trades.
In the end, the story will be the same. More evidence of endemic corruption will come to light allowing government entities to extract still more settlement payouts.
Chances that any actual Deutsche Bank employees get "Tom Hayes-ed": slim.
Chances that a few traders are fired and then promptly find lucrative new work somewhere in the Swiss financial community: pretty good.
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Which company from atlante recently sold about 40 jets to Russia?
Careful before giving JPM's Anti-christ-of-finance title to DB.
If 'they' are focusing on DB 'they' don't want us looking elsewhere.
<Sadly I've turned into such a cynic, the default position one eventually takes when viewing rampant corruption and lawless with no power to stop it.>
Note to Deutsche Bank: INCREASE YOUR CAMPAIGN CONTRIBUTIONS TO THE OBAMA CABAL. Department of "Justice" investigations will terminate.
Every one of these Primary Dealer Banks has undertaken criminal acts and paid billions in fines, but they keep their primary dealer status and can have as much free money from the FED as they like. You would think that there would be some sort of requirements to be a primary dealer bank other than a corrupt enterprise stealing billions from small investors.
Is this because JPM and Citi etc. are jealous of the missed opportunity or just that it is always ONLY non-US Banks committing fraud. Perhaps the US Banks are all just "Doing God's work"?
Evidently only non US banks are worthy of prosecution.........I'm sure the answer is in Lois Lerner's emails.
Are their Clinton Fund Donations up to date?
Yeah I know CD, like how they keep insisting that the guy done for the LIBOR rig was the big boss of the scam. LMFAO.
I seem to recall Banker's Trust (swallowed by DB) having big Russian money laundering issues in the 90s.
There's nothing sad about it, it's just being realistic.
this is one order:
http://www.bloomberg.com/news/articles/2015-06-17/boeing-s-747-jumbo-boosted-by-7-4-billion-order-from-russia
Can somebody explain why the AMERICAN attorney general has any jurisdiction, or even any interest whatsoever?
Because Germany is a vassal state of the USA.
Deutsche Bank will end up paying a fine of $2 billion to $10 billion.
That's what happens when you are America's bitch. You will lose all your freedom and must always obey your masters in Washington.
Germany drops inquiry into claims NSA tapped Angela Merkel's phonehttp://www.theguardian.com/world/2015/jun/12/germany-drops-inquiry-into-...
Reports: BND helped NSA spy on France, EU CommissionSeveral German media outlets allege that Germany's secret service, the BND, helped the NSA spy on France and EU institutions. It comes after claims that Germany tolerated NSA spying on European firms.
http://www.dw.com/en/reports-bnd-helped-nsa-spy-on-france-eu-commission/...
Scary how powerful these people are.
Scary how stupid we are.
;-)
AG Loretta Lynch is following Holder's method of using the threat of criminal prosecution to shake down big businesses so she gets a cut of the loot. In effect, running a protection racket. Like the Mafia used to do.
Just donate to the Clinton (or soon the Obama) Fund....unlimited immunity...call Corzine for references!
I knew Putin was behind all this global financial manipulation and he and his gangster cronies who created the global ponzi scheme. All Russias fault.
Talking about money laundering, Loretta Lynch should look into MF Global, Solyndra, Planned Parent Hood, Solar Panel Co., All Democrat donors and money laundering schemes...Where's John Corzin? That's right he's a Lawyer and Democrat donor......
HSBC too?
from russia with love... DOJ/sec breaucrats are the most corrupt of all, somebody missed a payoff. or is this slap on the wrist time for some cover for the doj "see we do our job"..hopeless when economy is based on one and only one concept: Pay me.
What is that stupid bitch Lynch up to and how big with the political donation need to be ?
Finding a way to fuck the American people.
See, if they were doing God's work like the Goldman they wouldn't have these pesky problems. Praise be to the squid.
And the iceburg is not heading toward the ship, it's the other way around.
John Gotti was never as good a shakedown artist as the US authorities.
Give Gotti and the mob credit though, they know they're criminals and never try to hide the fact.
Pretty sure banks have perfected the 'shakedown'. Gotti never got to print his own money, he actually had to earn it.
As HyperTiger used to say on the old Capitalstool forum -
"When the opening bell rings it's the start of a massive crime spree."
+1 for mentioning ol' HyperTiger. He's into numerology these days. Don't know what's up with that.
He was a bit of a nutter, but I liked him.
Sooo...any clawbacks from those that profited from this, or just keep taking it all off of the shareholders?
What? Personal responsiablity? For Bankers? What are you some kind of communist?
Great, the USA is set to fight those amongst the Russians who are their only allies - or rather, were their only allies in their anti-Putin crusade - the liberal oligarch scum and the wealthy traders.
Good job. There is not going to be ONE Russian left to side up with the USA.
Did any of these trades occur in the United States and subject to US Securities laws? Because Lorretta Lynch likes to forget that US laws don't apply to other countries.
The mistake DB made was to convert into US$ and we know the US thinks any transaction, anywhere, using its money comes under its jurisdiction.
The Russo-Sino SWIFT analogue can't come soon enough for a lot of people round the world.
Declaration of war on Mutti's economic lebensraum...the heat is on.
The stinking Department of Injustice and Hypocrisy.
When money is moved for people you don't like, they call it criminal. When money is moved for your criminals, its legal.
that's some funny shit right there
"shake down...for protection money". It's all about the money - never about doing what's right, lawful or protecting law abiding clients. This IS the face of facism at it's finest.
they are only 4 years too late to do anything...
they post this so the masses think they care...
not good... years ago the big shots kick out
Elliot Spitser and replace him with a Blind Guy ...
Elliot was good at catching crooks ... the big shots
had to remove him so they could rape the land...
DB's criminal activity aside, when is the rest of the world going to tell the US DOJ to mind its own business? Isn't there enough corruption in their own back yard?
DB's criminal activity aside, when is the rest of the world going to tell the US DOJ to mind its own business? Isn't there enough corruption in their own back yard?
And this is the Russian answer: Russian Airborne Troops chief says paratroopers ready to help Syria in combating terrorism
USA supports ISIS while saying they are fighting them........ pure evil.
Meanwhile, unsanctioned Russian rocket engines continue to arrive in the US... since the US needs those.
http://sputniknews.com/science/20150804/1025377718.html
If I was the USA I would quadruple inspect those for potential defects.
Seriously, the whole US lead sanctions regime is intended to harm everyone but the US, in particular the export sectors of the EU. Anyone can see that. Good for any person, corporation or country who tries to work around it.
Unless these Deutsche Banks transaction took place in America, the DOJ can roll their judicial overreach up and stuff them in Nudelman's oversized cavities.
when are the europeans going to start retaliating against the American Crooked banks?
how about Americans starting to retaliate against the American Crooked banks? imho they are hurting you more then us
the worst you could do to them is to have a return of the Glass-Steagall Act. we would cheer you and do the same here
Let me tell you something, Ghoridus. The people of America, particularly on the East coast, have turned into the Stepford Wives. I had occassion to go there to visit and try to get some things done. Finding anyone capable of completing a task other than cashing a check was insurmountable. When I went to the bank to cash a check, they wanted to know what the money was for. I told them it was for me, it was drawn on their bank and I expected them to cash it. The manager was called, I won and it was I who was the loon in the opinion of those around me.
I think it might be the chemtrails. They don't have anymore pigeons there in the towns where I visited. Really scary.
this isn’t going to be swept under the rug before every regulator from New York to Moscow extracts its fair share of protection money from the bank.
The latest government funding mechanism ... having tapped out all previous ones. Coming to a theater near you: Bank and annuity customer bailins.
Payback for Germans re: Intel stuff and gold back from Fed.
We WILL spy on your phone.
Wonder when the bloated, corrupt maggot Lynch will open the investigations into Hillary's multiple crimes??? OR is it enough for Hilla-roid to talk with a black accent and be 100lbs overweight?
And Qwest CEO, Joseph Naccio, was framed by the Bush administration for insider trading in 2005, after refusing to comply with orders from the NSA to do warrantless wire tapping, according to the Wayne Madsen Report on July 29. He did 5 years behind that. Now you know why the cellular phone companies cratered to the NSA. Let's see if that makes the MSM headlines. Let's see if that gets investigated. (Crickets chirping)
So... DB was rigging LIBOR - and Goldman wasn't fully cognisant, and profiting handsomely????
As John McEnroe used to say: "You can't be serious!"
"Our" Justice department likes to police the world, yet can't seem to police malfeisance in our own country. First it was FIFA, while ignoring Wall Street, now its a German Bank, while ignoring Wall Street, all because the zionists don't like Putin and his Orthodox Christain (non petroleum dollar using) Country.
They don't like him at all, indeed. As crafty and clever as this lot is however, they're up against a formidable counter-puncher in Putin.
Justice Departent isn't interested in American malfeasance. This isn't even about LIBOR. It is all about chasing Russian money that is trying to circumvent USA sanctions. Therefore Justice Dept will never let this drop and will investigate VERY thoroughly.
It's been somewhat quiet on the Russian front of late. Gotta antagonize the bear every so often to keep everything 'fresh', right...?
Putin's got a good cop bad cop thing going with Obama.