Tags: Cosmopolitan, Deutsche Bank, Dodd-Frank, labor disputes, Las Vegas, nightmares you NEVER WAKE UP FROM
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?