Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Deutsche Bank to pay nearly $125 million to resolve U.S. bribery, metals charges

Stock Markets Jan 08, 2021 04:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of Deutsche Bank is pictured on a company's office in London

By Jonathan Stempel and Noor Zainab Hussain

NEW YORK (Reuters) - Deutsche Bank AG (NYSE:DB) will pay nearly $125 million to avoid U.S. prosecution on charges it engaged in foreign bribery schemes and manipulated precious metals markets, the latest blow for the bank as it tries to rebound from a series of scandals.

Germany's largest lender agreed to the payout as it entered a three-year deferred prosecution agreement with the U.S. Department of Justice, and a related civil settlement with the U.S. Securities and Exchange Commission.

Almost all of the payout relates to charges Deutsche Bank (DE:DBKGn) violated the federal Foreign Corrupt Practices Act (FCPA) over its dealings in Saudi Arabia, Abu Dhabi, China and Italy, court papers show. Nearly two-thirds of the payout is a criminal fine.

The settlements were made public on Friday at a hearing in the federal court in Brooklyn, New York.

"Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others," in order to win and retain "lucrative business projects," Acting U.S. Attorney Seth DuCharme in Brooklyn said in a statement.

A bank spokesman said, "We take responsibility for these past actions," which occurred from 2008 to 2017, following "thorough" internal probes and full cooperation with authorities.

Deutsche Bank has been trying to restore profitability after five years of losses, including by exiting some businesses and reducing its workforce by 18,000.

It has also been trying to restore its image in Washington amid several investigations into its dealings with U.S. President Donald Trump, a longtime client.

Prosecutors accused Deutsche Bank of violating books-and-records provisions of the FCPA, which forbids companies with U.S. operations from paying bribes elsewhere.

They said the violations included disguising bribes paid to a client's "decisionmaker" in Saudi Arabia as "referral fees," and recording millions of dollars of payments to an intermediary for an Abu Dhabi official as "consultancy" fees.

The SEC also accused Deutsche Bank of making improper payments to a consultant to help establish a clean energy investment fund with a Chinese government entity, and to an Italian tax judge for referring wealthy clients.

In the metals case, prosecutors accused Deutsche Bank traders of placing fraudulent trades, known as spoofing, to induce other traders to buy and sell futures contracts at prices they otherwise would not have.

In 2019, Deutsche Bank agreed to pay $16.2 million to resolve SEC charges it violated the FCPA by hiring unqualified relatives of government officials in China and Russia in order to win or retain business. https://reut.rs/3i76g6Z

Deutsche Bank to pay nearly $125 million to resolve U.S. bribery, metals charges
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
James Johannsen
James Johannsen Jan 08, 2021 5:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
jail time anyone such bs
Steven Kilgore
Steven Kilgore Jan 08, 2021 3:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sounds like a Tuesday afternon at the Biden household.
Felipe Daniel
Felipe Daniel Jan 08, 2021 12:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Open bribe to China CCP
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email