Deutsche Bank has been having a bad time recently, but now the German bank is facing even more problems.
Deutsche Bank is being investigated by the US Department of Justice (DoJ) as a part of its probe of the massive 1MDB scandal, according to the Wall Street Journal.
Deutsche Bank’s bad week is coming to a close with more bad news. After the bank kicked off a brutal round of layoffs cutting 18,000 jobs earlier in the week, they are now facing scrutiny over generous sendoffs for senior executives. Several smaller scandals over the course of the last year have taken place, with some ending with Deutsche Bank offices being raided. To add more misery to the situation, the New York Times reported that managers at the bank had overruled compliance staff concerns surrounding their business with Jeffrey Epstein, who is currently facing charges of sex trafficking. Now the bank is facing even more trouble over its dealings with 1MBD.
1MDB (1Malaysia Development Berhad) is an insolvent Malaysian strategic development company, set up in 2009 as a state fund seeking to promote development through foreign investment. The state fund has become the center of one of the biggest scandals in financial history, with over $4.5 billion being embezzled, and much of it being spread around the world.
The most recent bad news for Deutsche Bank comes in the form of a DoJ investigation into one of the bank’s executives. The DoJ previously investigated Goldman Sachs over their high-value dealings with 1MDB. Now the DoJ are also looking more closely at a link between a former Goldman Sachs executive who moved on to work at Deutsche Bank, according to the Wall Street Journal. The employee is not being named, and neither them nor Deutsche Bank are being accused of any wrongdoing as of Thursday. “Deutsche Bank has cooperated fully with all regulatory and law enforcement agencies that have made inquiries relating to 1MDB,” the bank said in a statement.