Deutsche Bank Sued For Running An "International Criminal Organization" In Italian Court

Tyler Durden's picture

Having been accused, and found guilty, of rigging and manipulating virtually every possible asset class, perhaps it was inevitable that Deutsche Bank, currently on trial in Milan for helping Banca Monte dei Paschi conceal losses (as first reported last October in "Deutsche Bank Charged By Italy For Market Manipulation, Creating False Accounts") is now facing accusations that it was actually running an international criminal organization at the time.

In the closely watched lawsuit, prosecutors used internal Deutsche Bank documents and emails to persuade a three-judge panel to rule that there were additional, aggravating circumstances to the charges the German lender already faces related to various derivatives transactions. As Bloomberg reported overnight, the material included a London trader’s "well done!" message to a banker who is now on trial.

The reason why prosecutors are seeking expanded charges against the German banking giants is that by allowing prosecutors to argue that the bank's market manipulation crimes were committed by an organization operating in several countries would lead to higher penalties if they win a conviction.

Predictably, Deutsche Bank's lawyer, Giuseppe Iannaccone, sought to block the move at Tuesday’s hearing, saying there wasn’t a clear connection between the original charge of market manipulation and the alleged aggravating circumstances.  “The trial for Deutsche Bank managers becomes more problematic after the judge’s decision,” said Giampiero Biancolella, an attorney specializing in financial crime who isn’t involved in the case. “If proven, the aggravating circumstance may increase the eventual jail sentence for the market manipulation to a maximum of nine years.”

As a reminder, Deutsche Bank and Japan's Nomura both went on trial in Milan in December, accused of colluding with Monte Paschi to cover up losses that almost toppled the Italian lender before its current battle for survival. Thirteen former managers of Deutsche Bank, Nomura and Monte Paschi were charged for alleged false accounting and market manipulation. Focuing on the German bank, six current and former managers of Deutsche Bank, including Michele Faissola, Michele Foresti and Ivor Dunbar, were charged in Milan last year for colluding to falsify the accounts of Monte Paschi (which itself is so insolvent it recentl got its third state-funded bailout) and manipulate the market.

Michele Faissola

As a further reminder, Michele Faissola is the DB banker who was implicated in the death of DB's senior risk manager, William S. Broeksmit, who was found dead in 2014 after committing a still unexplained suicide.

Going back to the accusation that Deutsche Bank is a global criminal cartel, the prosecution’s request to label Deutsche Bank an international criminal association hinged on events that occurred in other parts of the globe, including the possible manipulation of an index, which isn’t the subject of charges in the Milan case. Specifically, as Bloomberg previously reported, a 2014 confidential audit commissioned by German regulator Bafin said that Deutsche Bank employees may have manipulated internal indexes to help ensure the success of the deal. The study, requested by Bafin, said an internal Deutsche Bank review described “abnormalities” in the values of proprietary indexes used to set the price for the Monte Paschi deal in December 2008.

The internal Deutsche Bank report, which has never been made public, is cited in the Italian court documents seen by Bloomberg. "DB’s own trading activities were a significant factor in the observed ‘spike’ in prices and volumes," a portion of the bank’s document says.


On the afternoon of Dec. 5, 2008, just one minute and 57 seconds after the futures price underlying the index had spiked to a level required for the deal to succeed, a trader in London pushed the button on the "well done!" email, evidence introduced to the Milan court shows. The recipient was Michele Foresti, then the bank’s head of European fixed income.

Iannaccone, the lawyer for Deutsche Bank who is also defending Foresti, said the judge’s decision had to be respected and declined to comment on it. "We will clarify everything during the trial." While investigators at the Frankfurt-based bank couldn’t “unequivocally” link the spike to manipulation or the deal’s outcome, according to the Bafin-commissioned audit, the communications among the Deutsche Bank employees "provide a connection between the trading activity and the MPS transaction," the bank’s internal probe concluded.

Should the judge in the Milan case find Deutsche guilty of "running an international criminal organization", it will be a new low for the bank whose actions over the past several years have attracted global attention due to its criminal breach of laws and regulations in every market in which it has participated, resulting in dramatic and periodic executive changes, as well as the non-payment of bonuses for virtually all employees in 2016 as the bank's stock briefly crashed to all time lows last summer.

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syzygysus's picture

Oh boy, which banker is going to nail gun himself while jumping backwards out a window?

Looney's picture


It’s time to merge Deutsche Bank with Volkswagen and… shut the joint down.  ;-)


Dame Ednas Possum's picture

Sounds bullish for DB stock. 


VinceFostersGhost's picture



FREE Deutsche Bank!!!



Oh wait......they are.

E.F. Mutton's picture

Special Prosecutor Corzine.  He's tanned, rested, and ready.

meta-trader's picture

she was a waitress in a cocktail bar now she owns a jet...

prefan4200's picture

Wow!  What comes after "jet...."?  I'm shitting my pants with excitement to find out !  Does she own a jet ski?  A jetty?  A jethro tull album?... <--- here's 3 dots for you, too, and you don't have to click on a link - piss off, spammer !

Luc X. Ifer's picture

I know a guy who worked till 2006 as Enterprise Architect for DB in Frankfurt/Main and I heard horror stories about how DB operates. Myself did few enterprise projects with financials and had the same experience, all financial institutions have a dual existence, the public one who has to fit and adjust to the politically correct trends of the moment and a private, hidden existence meant to serve solely the maximization of profit for their most powerful stakeholders of the moment.

syzygysus's picture

Would their new slogan be.... stehlenvergnügen ?

veritas semper vinces's picture

(Deutshe Bank) is not (German).

PS: I love the Italians

veritas semper vinces's picture

No,shut down Jewmerica bc (they) are behind the Volkswagen BS and the
Deutsche Bank scam (DB was forced to buy Banker's Trust of the Fed Reserve Bank,bc the crooks here did not want to have the derivative scam too close to home,so (they) forced DB to buy it and transfered the derivative Ponzi to them.

Volkswagen was fined to get rid of competition,you know,the german cars are much,much better than the american crap

JerseyJoe's picture

STill laughing - I am dying thanks for that!

TheVillageIdiot's picture

Was thinking the same...

Douche Bank

agstacks's picture

The Italians just want a little taste of the heist.  10% is customary, then they can go back to doing what they do. 

Yog Soggoth's picture

If they get the bank to pay in gold it would be a winning event. Then get the heck out of the EU and make the Lira great again.

VD's picture

these banks are running criminal cartels since even before 1913.

gold would be north of $3k/oz if not for them...

VD's picture

true. i was being overly conservative no doubt. although w/out fed et al. inflation & hence fiat dilution would be such that $3k adjusted would be far more, but then that's a lot of extrapolating, etc.

NuYawkFrankie's picture

If DB is a "Criminal Organisation" then that elevates The SQUID to the equivalent of "The BIS" of Organised Financial Crime.

Wahooo's picture

They're doing god's work. Which makes me wonder what god is all about.

Luc X. Ifer's picture

Remember G Carlin, god can do anything but somehow he's very bad with money and he always needs more money, does that ring a bell :) ?!


SoDamnMad's picture

Not mentioned anywhere (as usual) but Banco Popular, Spain's 6th largest bank, has had a bank run the last couple weeks.  The typical looking for someone to take it over and pick up all those NPLs at the depositors and taxpayers expense. Anyone hear where that is going?

Swamp Yankee's picture

VD hit it out of the park.


They all stopped being business in 1913.

wattie's picture

Involved here too! Join here to kick these bastards in the nuts.

Nesbiteme's picture

If "Deutsche Bank is a global criminal cartel", it is the the world's most badly run global criminal cartel.

Radioactive Ideas's picture

I, for one, am very glad that we don't have these type of criminal bankers in the US.

VinceFostersGhost's picture



If someone doesn't understand the sarc......they probably shouldn't be here.

any_mouse's picture

Radioactive Ideas,

Well Done!!

wchild's picture

I just want to see some jail time, for once - it all means nothing if nothing happens t these assholes.   How do you even convince your "friend or neighbor" if it never even see's the light of day.  The average Joe has no idea this is even going on, and no desire to find out 

Yog Soggoth's picture

Maximum sentence with possibility of reduced sentence when he points out the others. I doubt he is the kingpin of the vast criminal empire here.

RagaMuffin's picture

Not expert in derivatives. Forr want of a better description do they have condition clauses that legal judgements against DB are a violation of the agreement, thus rendering the derivative null and void?  If so,, or some iteration of that line of thinking $122trn bubble meet pin     ;-)

skbull44's picture

Time to watch The International again with Clive Owen...

barysenter's picture

Seen this move before. The (((Federal Reserve))) will manage the (((reparations))) to "Italians". For decades.

Dragon HAwk's picture

That was before, all the Big banks are Squeaky clean and Rainbows now.

Nunyadambizness's picture

Yep, agreed-- that was in the before time, in the long, long ago.  All squeaky clean, rainbows and butterflies now (you forgot the butterflies).   

JailBanksters's picture

Pssst, I've got a secret for you.


There isn't an honest Bank in the whole Banking Club.

But people think they must be Honest otherwise the Government would have revoked their Licence or shut them down !

With all their Crimes committed, not ONE person has gone to Jail for committing crimes against the Public. A few have gone to Jail for stealing from the Bank, but stealing from the Public is perfectly acceptable.



Equalizer's picture

You know your doing something wrong when the mafia accuses you of running an international criminal organization!

Greenspazm's picture

They had insufficient reserves at the Vatican Bank.

MPJones's picture

Governments next? I mean, compared to governments banksters are rank amateurs in terms of developing crime syndicates.

withglee's picture

Governments next? I mean, compared to governments banksters are rank amateurs in terms of developing crime syndicates.

Money changers (i.e. banks) "institute" governments to enforce their demands for tribute (arbitrary interest collections); claim to be the creators of money (traders actually are); and sustain their frontrunning racket (they call it the business cycle).

Whodathunkit's picture

That Faissola guy looks soul-less.  Black eyes, sharp pointy teeth.  I'll bet he eats babies.

Evan Wilson's picture

"Having been accused, and found guilty, of rigging and manipulating virtually every possible asset class"



You have to be a special kind of idiot to be losing money when you ARE the casino, you rig all the games, and you somehow manage to lose money doing it.

tuetenueggel's picture

Hang them. under a brigde or on a lenterne pole.

Where are the guys with cojones ?

oncemore's picture

Greece? It is your turn now.

CHoward's picture

At least someone still has the balls to call a spade a spade.