On Wednesday, Deutsche Bank has announced that it has agreed to settle allegations from the US Federal Reserve regarding the bank’s operations in the country who have failed to take specific actions needed to avoid money laundering. The US Federal Reserve fined the company $41 million which he German-lender have agreed to pay.
This comes after the bank’s ongoing settlement worth $8.9 billion from the U.S. Justice Department in
According to the Fed, the German bank’s operations in the country supposedly complying with the Bank Secrecy Act was to help federal agencies avoid illegal transactions.
Aside from the imposing $41 million fine, the bank has also agreed to improve and upgrade its senior management control. In a statement, Deutsche Bank stated that they are committed to implementing all remediation measures under the Fed’s order and to make sure that their expectations were also met. The bank also agreed to enlist a third-party monitor that will conduct a review of the transactions with other banks globally during the first
The investigation by the Federal Reserve against the German lender included allegations that the bank was not able to completely monitor possible suspicious transactions dating from 2011 until 2015. Other regulators have also conducted multiple investigations against the company for the same cases along with illegal trades.
$95M Maryland Housing Crisis Settlement
On Thursday, the bank also reached a settlement of $9 million with Maryland in connection
This will serve as a solution to the civil claims against the German bank that supposedly swayed investors. Claims against Deutsche Bank revealed that the company did not directly lend their customers. In its place, the customers were handed packaged and sold mortgages into complex securities also known as residential mortgage-backed securities and collateralized debt obligations.
According to Maryland Attorney General Brian E. Frosh, the agreement has been the largest reached by a state so far. He added that the bank has failed to take necessary actions in verifying and confirming loan-to-value ratios, homebuyers’ credit background along with the mortgage's property values backed securities.
DBK Gets Rid Of Polish Operations
Deutsche Bank which has recently faced numerous settlements and fines from regulators has also been expanding and raising its capital has recently been reported to have sold its Polish operations which will not just raise some cash for the company but also allow them to get rid of non-core asset portfolio. Reports have not revealed or showed how much this would bring the German company. On the other
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