Deutsche Bank, as you all know, owns a Las Vegas resort and casino called the Cosmopolitan. The bank never set out to be the proprietors of such an establishment, but after a developer who they loaned money to defaulted, they didn’t have much choice, did they? So now, here we are, 6 years and $4 billion later. Senior execs at the bank won’t be seen there. Guests aren’t particularly interested in gambling at the place. And, by the way, it’s never turned a profit. So it wasn’t entirely surprising to hear the Germans had decided to try and find someone to take the investment off their hands and that was before this happened:

One detail the bank didn’t account for when it opened the Cosmopolitan of Las Vegas: a labor dispute that has reached from Nevada into the bank’s dealings with the Federal Reserve in Washington. The tenacious union that represents the hotel’s culinary workers hasn’t stopped at the usual tactics of picketing, sit-ins and traffic blockades. It has lobbied the Fed to tighten oversight of Deutsche Bank and launched a website that among other things encourages bank insiders to report allegations of wrongdoing to regulators. While the union’s ranks of maids, dishwashers, cooks and cocktail servers may not pay much attention to financial regulation, its researchers have dug deep into the 2010 Dodd-Frank law to pressure the bank to the bargaining table. “Our experience in Las Vegas over the years has been when you have a financial institution that has to run a casino for a little while, they just don’t understand the way labor relations work in the city,” said Marty Leary, a research director at Unite Here, the parent union of the culinary workers’ affiliate in Las Vegas. “We often find that we have to educate them.”

Bankers Learn What Happens in Vegas Can Land Back in D.C. [Bloomberg]

Earlier: Who Wants To Buy A Las Vegas Resort?

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Comments (12)

  1. Posted by guest | May 2, 2014 at 10:09 AM

    I could have sworn that headline was going to just be Deutsche Bank ThisClose To Just Saying "To Hell With This Place," the place being Deustche Bank

  2. Posted by guest | May 2, 2014 at 10:10 AM

    This is turning out to be even more entertaining than Morgan Stanley and Revel.

  3. Posted by B Iteme | May 2, 2014 at 10:10 AM

    Deutsche didn't do well at running rigged games on ISDA FIX, LIBOR or FX so what made them think they could run an entertainment business where the odds were in their favor?

  4. Posted by Led Kennedy | May 2, 2014 at 10:28 AM

    Ich bin ein Nevader!

  5. Posted by Chiarb | May 2, 2014 at 10:51 AM

    While hardly an OWS fan, I have to chuckle at the thought of union members "educating" a group of German bankers.

    A guy who has lived in Chicago way to long and knows what "educate' means.

  6. Posted by guest | May 2, 2014 at 10:57 AM

    that was my favorite part too.

  7. Posted by Captain Oblivious | May 2, 2014 at 11:57 AM

    The place looks like Liberace blew a load on it.

  8. Posted by el guesto | May 2, 2014 at 1:05 PM

    pretty sure the last time i was there (december) they actually had liberace's car in the lobby. it was either them or aria; pretty sure it was cosmo.

  9. Posted by An Epileptic | May 2, 2014 at 1:29 PM

    The seizure inducing tv spots they run probably does not help

  10. Posted by Katniss | May 2, 2014 at 4:12 PM

    the odds are never in their favor

  11. Posted by Guest | May 4, 2014 at 6:18 PM

    Wonder if the guy was holding a baseball bat when he said that

  12. Posted by Liberace | May 4, 2014 at 7:15 PM

    confirmed it was cosmo