Deutsche To Pay $16.2M To Settle Foreign Corruption Charges
Zacks Investment Research | Aug 23, 2019 06:39AM ET
Deutsche Bank AG (DE:DBKGn) (NYSE:DB) is required to pay about $16.2 million as fine to the U.S. Securities and Exchange Commission (“SEC”). The bank was charged of improperly hiring relatives of foreign government officials to win business in China and Russia between 2006 and 2014.
The settlement amount consists of disgorgement of $10.8 million, interest of $2.4 million and a $3 million civil penalty, per SEC’s filing.
Per the regulator, Deutsche Bank employed children of some of the powerful officials “as a personal benefit to the officials in order to improperly influence them to assist the bank in obtaining or retaining business or other benefits.”
The German lender is said to have created false books and records that kept these violations hidden. Also, it failed in maintaining a proper system of internal accounting controls for hiring practices that could reasonably assure that its employees did not bribe foreign government officials.
Deutsche Bank did not admit or refuse the allegations regarding violation of the Foreign Corrupt Practices Act.
Notably, the penalty that it is required to pay is low compared with JPMorgan Chase (NYSE:JPM) and Credit Suisse (NYSE:CS) which were fined about $264 million in November 2016 and $77 million in July 2018, respectively, for similar accusations.
Our Take
Though Deutsche Bank’s restructuring efforts, including cost-saving measures, look encouraging, it is difficult to determine how much the bank will gain, considering the prevalent headwinds. Furthermore, dismal revenue performance and involvement in legal issues remain concerns.
The stock has lost 18.3% on the NYSE in the past six months compared with the Zacks Investment Research
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.