A couple weeks back, Deutsche Bank vice chairman and managing director Brian Mulligan filed a claim with the city of Los Angeles, letting people know he intended to sue for $50 million over an incident that took place involving the LAPD, which left the media banker with “a broken shoulder blade and 15 nasal fractures.” According to Mulligan, police officers abducted him from a street corner, drove him to a motel, told him to wait there for a few hours, and then beat him so “ruthlessly” he “barely looked human” when they were done. According the LAPD, several calls had been placed about a man in the area “trying to break into cars” that fit Mulligan’s description. They confronted the guy, who told them he was tired, which was why they drove him to the motel. He emerged hours later, started running through traffic, failed to heed their orders to get out of the street and assumed a “fighting stance,” hence the need to deal with him in an aggressive fashion. At the time, a spokesman for the LA County DA’s office said that there are no plans to file criminal charges and that the office would simply like to “have a discussion” with Mulligan to advise him on “how best to follow the law so that incidents like this don’t occur again.” Also, they’d like you to know, it’s possible he was experimenting with bath salts. Read more »
Authorities Would Like To Add That Deutsche Bank Executive “Ruthlessly Beaten” By LAPD May Or May Not Have Been On “White Lightning” At The TimeBy Bess Levin
Yesterday afternoon, Deutsche Bank vice chairman and managing director Brian Mulligan filed a claim with the city of Los Angeles, letting it be known that he plans on suing for $50 million, over an altercation with the LAPD that left Mulligan with “a broken shoulder blade and 15 nasal fractures.” According to the media banker, he was minding his own business one night in May, when a couple of officers approached him, asked him what he was doing in the vicinity of a marijuana dispensary, searched his car (where they found a few thousand dollars), drove him to a motel and told him to wait there. Several hours later, still waiting, Mulligan says he started to become suspicious and decided to leave, at which point the officers returned and “began ruthlessly beating him” so badly he “barely looked human” when they were done. If this had happened to you, you might be a little upset too! The LAPD, however, claims that Mulligan has no reason to be angry with them and, in fact, owes the officers an apology, for his “outburst of erratic behavior.” Read more »
The Germans are considering sending some bankers to live on a farm upstate, where there’s plenty of fresh air and room to run around. Read more »
It’s no surprise that more Liborneriness is coming to a bank near you; with Barclays and UBS already pretty much having admitted wide-ranging Libor manipulation and Deutsche Bank seeming to be next up for a roasting. Maybe some people will go to jail, and certainly some more banks will pay fines, but also certainly those fines will be very very very small compared to the potential lawsuits. Because there are eight hundred quazillion dollars of Libor-referencing contracts, and if you screwed them up then in some loose theoretical way you owe money to everyone who got screwed without having any offsetting claims against anyone who benefited.
Now the US legal system being what it is the lawsuits long preceded the evidence of manipulation and there’s a big mishegas of a Libor lawsuit that’s been going on for years in New York. This suit looks a little quaint now, being based on the theory that all the banks got together in a room, smoked cigars, rubbed their hands together, and agreed to lower Libor for some unspecified nefarious purpose. Now we know that they all worked against each other to lower and/or raise Libor for a variety of clearly specified nefarious purposes,* until the crisis hit and they all started working independently to lower Libor for clearly specified and maybe public-spirited purposes. And the banks will tell you that themselves, in their motion in the case filed last week:
Plaintiffs themselves cite as the primary motive for the alleged false reports a desire by Defendants to hide their supposed financial weakness from each other and the public, which would naturally call for circumspection by such banks, not discussion and agreement among them.
See? We would never work together to manipulate Libor – we’re too sneaky for that. We’d prefer to lie to each other, too. Read more »
The bad news is that Goldman Sachs, Deutsche Bank, UBS, and others have been making cuts and are expected to continue to do so. The good news is that not everybody is upset about it. Read more »
Mr. Jain, 49 years old, played a central role in building Deutsche Bank’s investment-banking business over nearly two decades as it reached beyond its staid commercial-banking roots. Investment banking now generates about 70% of the overall bank’s profits most quarters. He takes the [CEO] post at a time when many analysts consider the lender one of the least well capitalized among its investment-banking peers. The bank also faces a litany of legal problems on both sides of the Atlantic. Those who know Mr. Jain say he will cut the fat at the banking giant, sell businesses that don’t meet profit goals and shutter others. [WSJ]