Deutsche Bank May Have Managed To Break Its Deal With The Justice Department Literally Before The Ink Was Dry
If any bank could do it, the Germans are it.
In all the long and varied annals of Deutsche Bank’s legal and regulatory foibles, we may have a first. Having struck a sweetheart deal with its old client’s Justice Department just days after his coup attempt failed, it may have managed to violate it in record time.
The Justice Department has informed Deutsche Bank AG that the German lender may have violated a criminal settlement when it failed to tell prosecutors about an internal complaint in its asset-management arm’s sustainable investing business, according to people familiar with the matter…. That earlier criminal settlement was struck in January and related to Deutsche Bank’s involvement in overseas corruption and market-manipulation.
The thing about such deals is they make rather a big deal about keeping your nose clean and, failing that, fessing up in a timely manner. Since the former is all-but-impossible for Deutsche Bank, the latter becomes rather important, and, well….
U.S. authorities learned of the issue in an August Wall Street Journal article, rather than from the bank, which had ongoing disclosure and compliance obligations under the earlier criminal settlement, according to people familiar with the matter.
And the thing about deferred prosecution agreements is, you know, they’re just that: deferred, unless you live up to the terms of the agreement. And the people running the DoJ today are a bit less inclined to look favorably on Deutsche’s failings than their predecessors.
If U.S. authorities pursue Deutsche Bank for a breach of the agreement, the bank could lose its earlier deal and, in the worst case, face indictment and prosecution, according to the agreement…. Justice officials have said in recent months that they plan to call out companies for breaches of deferred-prosecution agreements, which allow companies to avoid a guilty plea but require them to admit wrongdoing. Some critics argue the leniency deals are used too often, particularly when the government doesn’t bring charges against employees who committed the misdeeds.
Justice Department Told Deutsche Bank Lender May Have Violated Criminal Settlement [WSJ]
For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.
Tagsterms:Justice DepartmentDeutsche BankDeferred Prosecution AgreementsesgBanksBy Jon ShazarThe Germans are alleged to not be taking ESG terribly seriously.
BanksDeutsche Bank May Have Killed A Whistleblower Program, But It Didn’t Break Any U.S. Laws In The Whole 1MDB MishegasIncredible, we know.
BanksToday’s Installment Of ‘Bad News At Deutsche Bank’In fairness, a fine at the end of a U.S. criminal inquiry may actually be the best news the Germans have heard in months.
BanksDeutsche Bank Makes One Last Deal With Donald TrumpAs usual, it’s going to lose money on it.
BanksDeutsche Bank Made A Pretty Good DealWe’re as surprised as you are, but less surprised some muckrakers are here to screw it up.
BanksBecoming Not Deutsche Bank Is Very ExpensiveOf course, remaining Deutsche Bank may be existentially more expensive.
BanksDeutsche Bank Almost As Good At Preventing Spoofing As At Preventing Money LaunderingThat, of course, means another round of fines.
BanksJudges Say Prosecutors Can Spoof Spoofing ProbesAt least, they say no one can question whether they’re doing it, which is just as good.
© 2021 Breaking Media Inc.Introducing Jobbguru: Your Gateway to Career Success
The ultimate job platform is designed to connect job seekers with their dream career opportunities. Whether you're a recent graduate, a seasoned professional, or someone seeking a career change, Jobbguru provides you with the tools and resources to navigate the job market with ease.
Take the next step in your career with Jobbguru:
Don't let the perfect job opportunity pass you by. Join Jobbguru today and unlock a world of career possibilities. Start your journey towards professional success and discover your dream job with Jobbguru.
Originally posted on: https://dealbreaker.com/2021/12/deutsche-bank-may-have-broken-dpa