Deutsche Bank has a history of skirting regulations to pad profits and personal bonuses. Wealthy Russians were sent money overseas by through a group of Deutsche Bank executives arranging stock trades that had no purpose other than disguising the fraud. In one case, a supervisor in the Moscow office was paid $3.8 million for “consulting agreements” by one of the companies.
Over $10 billion in laundered money was directed to London and New York form Moscow, and the Deutsche executives didn’t crack down on the schemes despite their opportunities to do so. Despite its history of fraud, Deutsche’s New York bank still has inadequate compliance and monitoring systems.
Deutsche agreed to hire an independent monitor to be approved by the Department of Financial Services. The monitor will review the bank’s relevant compliance system.
Why has the bank been able to continue with this fraudulent behavior? Clearly, even after they’re caught, they continue with the mischevious behavior. Does this imply that the consequences aren’t strict enough to deter the behavior from happening?