Deutsche Bank Can't Stop, Won't Stop Paying Paying Legal Fees For Fraud

If it's a day ending in 'y,' the German bank is forking over money related to an employee's elastic view of the law.

Author:: Bess Levin
Updated:: Jan 14, 2019
Original:: Aug 13, 2015

Yesterday's rate rigging is today's tax evasion vis-à-vis carbon-emissions trades. What will tomorrow's multi-million or billion dollar fine cover? Stay tuned.

The bank paid back 220 million euros ($245 million) of tax refunds that were uncovered during the investigation, according to the prosecutor’s statement Thursday...The case is part of a seemingly never ending litany of legal headaches faced by the bank, including probes of currency manipulation and a Munich fraud trial where Fitschen and four former chief executive officers are defendants. Deutsche Bank’s bill for fines and legal settlements surpassed 11 billion euros in the second quarter, according to calculations by Bloomberg. The company said last month that the cost of litigation will “remain a burden in the coming quarters.”

Deutsche Bank Employees Said to Be Charged in Carbon Tax Probe [Bloomberg]

For once the bank would like to investigate a matter and conclude "Everybody's clean." Today is not that day.

The Germans have finally relented.

(Getty Images)

Money is tight, so the bank's gotta think outside the box.

The Germans are not yet done firing employees in Asia. Deutsche Bank fired around a third of the staff in its Asia equity derivatives business on Tuesday, as part of a global cost savings plan announced on July 31, according to sources familiar with the matter. Just over 20 people remain in the division, down from a number in the mid 30s, according to one source, as Deutsche Bank and others seek to cut costs in businesses that are failing to generate adequate revenues as the global economy slows. The bank let go five traders, four product structurers and at least one salesperson from the division, the sources said, adding that the numbers were not yet finalised because the discussions were continuing...These cuts follow on the heels of layoffs in June in Deutsche Bank's Asian equities business, which like its counterparts at other firms globally has been struggling this summer due to slack trading volumes and a sharp decline in new share issuance. Deutsche Bank cuts a third of jobs in Asia equity derivs [Reuters]

Getty Images

Make that out to Joseph Jiampietro, with J, thanks.

The Germans thought about it and decided yes, layoffs sound like a great idea. Deutsche Bank said it will eliminate 1,900 jobs, including 1,500 at the investment bank, as part of an effort to save 3 billion euros ($3.68 billion). Deutsche Bank, based in Frankfurt, forecast “substantial costs” to achieve the savings without giving a figure in a statement to the stock exchange today. The job reductions are part of a strategy review Anshu Jain and Juergen Fitschen, Deutsche Bank’s new co-chief executive officers, are conducting as the lender grapples with declining revenue from the investment bank, which reported a 63 percent decline in second-quarter earnings today...“The time for vague promises of cultural change in our industry is long gone,” Jain said on a conference call with analysts and reporters. Deutsche Bank’s leaders are “totally determined to act quickly and decisively.” Deutsche Bank To Cut 1,900 Jobs In Bid To Save EU3 Billion [Bloomberg]

T-1 day!