Deutsche Bank's (DB) Internal Control Under Scrutiny In U.S.
Zacks Investment Research | Sep 10, 2019 08:29AM ET
Deutsche Bank AG (DE:DBKGn)’s (NYSE:DB) is once again under probe by U.S. regulators, this time regarding its dealings with Russian oligarchs. The news was reported by Reuters, citing three people familiar with the matter.
The German lender had handed transaction records, emails and other documents, such as account applications, know-your-client money laundering checks, internal assessments of "suspicious activity", and information about loans and mortgages to the officials. Post this, the lapses were identified.
One such lapse was related to ignorance of managers. Deutsche Bank’s staff had reported concerns about new and existing Russian clients and transactions, which was left unattended by the seniors.
Another lapse related to whether the bank allowed illegal funds to flow into the United States as a correspondent bank, where it processes transactions for others, the article reported.
However, the sources said that the probe is in early stage and it is not confirmed whether any action will be taken against the bank.
Troy Gravitt, a Deutsche Bank spokesman, said that the bank will remain committed to co-operate with the investigation.
Deutsche Bank remains involved in a number of probes such as one involving Citigroup (NYSE:C) regarding Australian cartel case. Also, it came under scrutiny of the U.S. Department of Justice regarding its role in state fund 1Malaysia Development Berhad.
Also, these investigations come at a time when Deutsche Bank announced its major restructuring plan in a bid to improve long-term profitability. It seeks to achieve a fresh set of targets by 2022 without raising additional capital.
However, dismal revenue performance on account of low interest rates in domestic economy, and involvement in legal issues remain key concerns.
Shares of Deutsche Bank have lost 10.9% on the NYSE in the past six months compared with the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.