Christian Sewing, CEO of Deutsche Bank AG, pauses as Germany’s largest bank announces full earnings in Frankfurt, Germany, on Friday. February 1, 2019. Deutsche Banks’ revenue has shrunk for an eighth consecutive quarter in the last months of last year, making it difficult for CEO Christian Sewings to turn around the lender through cost cuts. Photographer: Krisztian Bocsi / Bloomberg via Getty Images
Christian Boxing | Bloomberg | Getty Images
Deutsche Bank has agreed to pay about $ 125 million to solve separate U.S. sins in allegations that it paid bribes to secure business abroad and that it manipulated metal markets, according to someone with direct knowledge of the deal.
According to a copy of the documents filed in federal court in Brooklyn on Friday, the bank, an international capital market player and Germany’s largest credit provider, has entered into a three-year agreement with a deferred prosecution.
Nearly all of the dollar value of the penalties to be announced on Friday is linked to allegations that Deutsche Bank employees violated foreign corrupt practices with trade in China, Abu Dhabi, Saudi Arabia and Italy, according to the person, who did not want to be identified talking about regulatory matters.
That means about $ 123 million in fines paid to the Department of Justice and the Securities and Exchange Commission, the person said. The bank also pays $ 1.9 million to the Justice Department in connection with spoofing in the metal markets, giving the bank credit for an earlier settlement with the Commodity Futures Trading Commission.
“Deutsche Bank was engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as bribes for foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” U.S. Attorney Seth DuCharme said in ‘ a statement said. statement. “This office will continue to hold responsible financial institutions operating in the United States and practicing criminal activities to increase their profits.”
The news is the latest acknowledgment of sloppy control at Deutsche Bank since the financial crisis in 2008. In 2015, the bank agreed to pay $ 2.5 billion to cover the costs, as it was part of a network of banks that manipulated the global interest rate of LIBOR. In 2017, the company agreed to a $ 7.2 billion settlement for its role in creating sourced mortgage lending during the housing bubble.
More recently, Deutsche Bank paid the New York government $ 150 million in July, and CEO Christian Sewing admitted that his firm, Jeffrey Epstein, the child trader, would never have to accept as a customer in 2013.
According to a 2019 New York Times report, Deutsche Bank has given bribes and expensive gifts to politically connected individuals in China.
Bank spokesman Dan Hunter said the firm had taken ‘important’ steps to address the issues, including spending more than € 1 billion on governance and training.
“Although we cannot comment on the details of the resolutions, we take responsibility for these actions that took place between 2008 and 2017,” the bank said. “Our thorough internal investigations and full cooperation with the DOJ and SEC investigations on these matters reflect our transparency and determination to determine these matters in the past.”
The deal is also the latest bank settlement to be announced in the waning days of the Trump presidency. Deutsche Bank has been the main lender of Donald Trump for the past two decades and he currently owes the institution more than $ 300 million, the Times reported.