As seen with the Deutsche Bank trials… illegal operations are an everyday routine at some Banks.

At the same time – they ask for tax payers money – if all those evil-doing is back-firing in some court.

So they are like state-ensured criminals – if the deal goes well – we win – if the deal goes bad – we get money from the state. capitalism at it’s best.

Deutsche Bank “Achievements”

2016
  • Settled or otherwise resolved a significant number of large matters Current reserves of EUR 7.6bn include EUR ~ 4.7bn for matters already settled/agreements-in-principle to settle have been reached. Resolved matters without action
  • (Feb 2016)  BaFin closed special audits including those on interbank offered rates (IBOR), Monte dei Paschi di Siena and precious metals with no further action against the Bank or its employees
  • (Oct 2016) Commodity Futures Trading Commission dropped its investigations into alleged foreign-exchange manipulation
  • Settlements of large matters
  • RMBS: Civil claims arising from DB’s pre-financial crisis RMBS business in the US settled with Department of Justice (Dec 2016)
  • Russia/ UK Equities Trading: Regulatory enforcement investigations into DB‘s anti-money laundering control function settled with FCA and DFS (Jan 2017)
  • Kaupthing CLNs: Claims regarding DB-issued leveraged credit-linked notes referencing Kaupthing settled with plaintiffs (Oct 2016)
  • IBOR: Agreements-in-principle to settle four class actions in the US (Dec 2016 and Jan 2017)
  • Precious Metals: US civil litigations regarding the daily setting of gold and silver fixes settled with plaintiffs (Jan 2016)
  • High Frequency Trading/ Dark Pools: Allegations whether marketing materials adequately disclosed certain features and/or technical problems related to the Bank’s dark pool and order router settled with SEC, New York Attorney General and FINRA (Dec 2016)
  • Schickedanz: Agreement reached including claim on alleged wrongful advice in relation to the ‘Arcandor‘ bankruptcy (Dec 2016)
  • Quelle: https://www.db.com/ir/de/download/Deutsche_Bank_4Q2016_results.pdf

Jenkins’ partial list of banking misdeeds to date:

1
This list was compiled by Robert Jenkins, formerly a member of the Bank of England’s Financial Policy Committee and now Adjunct Professor of Finance, London Business School and Senior Fellow at Better Markets, and first delivered at the Finance Watch conference “Confidence, ethics, and incentives in the financial sector” on 17 November 2015.
2
1
Mis-selling of payment protection insurance
3
2
Mis-selling interest rate swaps
4
3
Mis-selling credit card theft insurance
5
4
Mis-selling of mortgage-backed securities
6
5
Mis-selling of municipal bond investment strategies
7
6
Mis-selling of structured deposit investments
8
7
Mis-selling of foreign exchange products
9
8
Fraud related to the packaging and selling of mortgage-backed securities that institutions knew to be “toxic waste”
10
9
Misleading statements to investors involving capital-raising rights issue
11
10
Misleading investors in the sale of collateralised debt obligations
12
11
Abusive small business lending practices
13
12
Predatory mortgage practices
14
13
Abusive or in inappropriate foreclosure practices
15
14
Abusive imposition of unwarranted fees and charges
16
15
Conducting false appraisals and charging customers for them
17
16
Aiding and abetting tax evasion
18
17
Aiding and abetting money laundering for violent drug cartels
19
18
Violations of rogue-regime sanctions
20
19
Manipulation of Libor
21
20
Manipulation of Euribor
22
21
Manipulation of SF Libor
23
22
Manipulation of Yen Libor
24
23
Manipulation of FX markets
25
24
Manipulation of gold fixing (London)
26
25
Manipulation of commodity markets via metals warehousing practices
27
26
Manipulation of electricity markets (California)
28
27
Manipulation of the swaps market benchmark index (Isdafix)
29
28
Collusion relating to credit default swap market dealing in violation of US anti-trust laws (“settlement” reached with authorities to resolve allegations)
30
29
Filing false statements with the SEC (London Whale)
31
30
Keeping false books and records (London Whale)
32
31
Reporting failures relating to Madoff
33
32
Withholding of critical information from Italian regulators
34
33
Bribing civil service employees in Japan
35
34
Mis-reporting related to Barclays emergency capital raising
36
35
Stealing confidential regulatory information by a banker
37
36
Collusion with Greek authorities to mislead EU policy makers on meeting Euro criteria
38
37
Financial engineering with the aim of moving Italian debt off-balance sheet
39
38
Manipulation of risk models with the aim of minimizing reported Risk Weighted Assets / capital requirements
40
39
Electronic FX trading related market manipulation
41
40
Process and control failures with respect to dealings with the ultra-wealthy/ “politically exposed persons”
42
41
Failure to prevent bribery of African officials
43
42
Peddling complex tax avoidance strategies to corporate clients
44
43
Improperly providing information about a Japanese company to its clients
45
44
Abuses relating to dark pool trading platforms
46
45
Failure to disclose conflict of interests to wealth management clients
47
46
Misleading investors with wrong / incomplete information
48
47
Conspiracy to commit multi-million dollar securities fraud
49
48
Overcharging customers for FX transactions
50
49
Failure to meet the terms of the 2013 Mortgage foreclosure abuses settlement
51
50
Repeated violation of federal laws connected with sourcing securities for client shorting
52
51
Manipulation of Korean stock market
53
52
Unfairly jumping the creditor queue to secure (confiscate?) collateral relating to Lehman
54
53
Publishing research and trading in the shares of a company it was advising
55
54
Other mortgage related abuses including: failing to accurately track payments by borrowers; charging unauthorised fees; and providing false and misleading information in response to complaints by customers
56
55
Use of minority owned non-consolidated subsidiaries to arbitrage capital requirements
57
56
Investment bank analysts altering stock research recommendations to curry favour with companies they are researching
58
57
Use of illegal offshore schemes to avoid paying income tax on bonuses
59
58
Ex Federal Reserve employee working at Goldman conspired with former Central Bank colleague to leak confidential information
60
59
Overcharging custody clients through the use of undisclosed or secret mark-ups on foreign exchange transactions in contradiction of its promise to clients of “best execution rates”
61
60
Mis-selling of loans to small business customers under the UK’s Enterprise Finance scheme
62
61
Offers to procure prostitutes to curry favour with SWF clients
63
62
Manufactured 7.2 billion euros of deposits by sham transactions to inflate reported deposit base during the crisis
64
63
Predatory practices connected with the issuance of banking debit cards
65
64
Supervisory failures connected with Chicago Mercantile related exchange and clearing fee
66
65
Falsifying accounts (manipulating mark-to- market pricing of derivatives positions) to reduce reported unrealised losses
67
66
Dismissal of whistle-blower who complained about the above
68
67
Creation of fake client accounts and making unauthorised transfers to achieve bonus driven sales targets – involving some 2 million clients and no less than 5000 employee offenders over some 5 years
69
68
Misleading investors via misclassification of private client asset accounts with a view to inflate reported Net New Assets for the bank
70
69
Executives awarding themselves generous pay packages at a time when their institution was requesting state aid
71
And currently under investigation…
72
70
Manipulation of precious metals markets (gold/silver/platinum/palladium – Switzerland)
73
71
Manipulation / collusion of the US Treasury Market auction/client sales
74
72
Manipulation of energy markets
75
73
Short changing clients a second time in not paying settlements in full
76
74
Violations connected with emergency fund raisings
77
75
Falsifying customer data and records
78
76
Misleading shareholders ahead of RBS rights issue
79
77
Misleading shareholder information with respect to Lloyds takeover of HBOs
80
78
Conspiracy to force small businesses into bankruptcy to the benefit of the lender
81
79
Insertion of illegal rate floors in Spanish mortgage lending
82
80
Faking customer files to justify predatory foreclosure practices
83
81
Misleading profit and capital statements based on questionable accounting practices
84
82
Bribing (“Improper payments”) officials in connection with license applications in Saudi Arabia
85
83
Hiring sons and daughters of senior officials in return for favours
86
84
Fabricating complaint letters after the fact to justify dismissal of a whistle-blower who raised alarms over possible mis-selling of mutual funds.
87
85
“Mis-informing” (lying) to 4500 people over existence of dormant accounts
88
86
Use of “mirror trades” ($10 billions worth) to circumvent Russian related sanctions
89
87
Overcharging customers who are past due on their credit cards
90
88
Market rigging of Gilt trading
91
89
Hiding failed Loans in the commercial real estate portfolio in 2009 and 2010 whilst issuing new stock to repay government bail-out money
92
90
Non transparent and excess charges for FX transfers by major UK banks to small businesses in the UK
93
91
Manipulating shareholdings around dividend payment dates to trigger dishonestly acquired tax reimbursements
94
92
Manipulation of the Australian “bank bill swap rates”
95
93
Manipulation of the government sponsored bond market (supranational, sub-sovereign and government agency debt or “SSA market”)
96
94
Use of secret / undisclosed payments of circa $500mio connected with emergency capital funding
97
95
Knowingly acquiring “dirty debt” (a loan used as part of a multi-million pound embezzlement scheme) and using it to demand compensation from an African government
98
96
Conspiracy with borrower to falsify work estimates totalling $400 million of fraudulent accounts receivable
99
97
Facilitating fraudulent activity by customers via use of import advance payments
100
98
“Spoofing” in trading of US government bonds
101
99
Laundering the proceeds of Petrobras related corruption
102
100
Mis-selling of “lobo” loans to UK Local Councils
103
101
Fraud and criminal mismanagement in connection with account management for the former prime minister of Georgia
104
102
Forcing customers to switch from variable (“tracker”) mortgages into fixed rate mortgages – in a falling / low rate environment
105
103
Mis-selling expensive life insurance products to little old ladies in France
106
104
Facilitating African money laundering on a grand scale
107
105
Misleading Libor submissions with the aim of boosting confidence in the bank’s perceived credit worthiness
108
106
Conspiring to facilitate VAT evasion through manipulative carbon trading transactions
109
107
Knowingly misleading a major investor in a high stakes deal
110
108
Misleading inexperienced officials in nascent Libyan SWF into complex and ultimately loss making derivative trades
111
109
Mishandling of the proceeds of securities offerings for a state investment fund
112
110
Offering for use, false and misleading valuation opinions on M&A transactions to curry favour with wealth management clients
113
111
Abusive practices in handling mortgage arrears
114
112
Errors and abuses connected with reverse mortagages and related foreclosures in NY State
115
113
Manipulation of Australian Bank Bill Swap Rate – BBSW.
116
114
Forging client signatures to create unwanted credit card account and then harassing the individual for non payment of charges relating to a card never applied for
117
115
Dismissing employees who failed to make their sales targets through fraudulent behaviour
118
116
Forcing distressed banking clients to hire a turn-around consultant who recommended expensive new lending facilities and from whom the banker received personal kickbacks
119
117
Collusion to falsify accounts of Italy’s third largest bank
120
118
Violations in connection with IPO underwriting and distribution (UBS/DB HK)
121
119
Lending money to investors who then invest in the bank’s stock in violation of the law (Iceland proven / UK under investigation)
122
120
Firing employee for statements made while cooperating with an official investigation/misuse of confidential info

src: https://docs.google.com/spreadsheets/d/1AxUvF7EuPZ5l048YekAOoZsd3dFOpAlPXSYd_VSrNLQ/pubhtml/sheet?headers=false&gid=0

src: http://www.finance-watch.org/hot-topics/blog/1186-jenkins-bank-misdeeds

 

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