US Probes Deutsche Bank's 1MDB Dealings
July 11 2019 - 5:42AM
Dow Jones News
By WSJ City
The sprawling, multibillion-dollar Malaysian development fraud
scandal that has toppled a prime minister and stretched from
Hollywood to Wall Street is threatening to implicate another major
global financial institution: Deutsche Bank.
The US Justice Department is investigating whether the German
lender violated foreign corruption or anti-money-laundering laws in
its work for 1MDB.
KEY FACTS
--- Deutsche helped raise the fund $1.2bn in 2014, according to
people familiar with the matter.
--- By then, concerns about the fund's management and financials
had begun to circulate.
--- Deutsche Bank played a large role in a variety of
transactions related to 1MDB.
--- The probe into Deutsche has been helped by former Goldman
Sachs executive Tim Leissner.
--- Prosecutors have been investigating similar issues at
Goldman. Leissner admitted helping 1MDB siphon off funds.
Why This Matters
New details of the investigation come at a sensitive time for
Deutsche Bank. Germany's biggest bank is already contending with a
criminal money-laundering probe in the US, congressional scrutiny
of its relationship with President Trump and others in his circle,
and a far-reaching global overhaul to shrink the bank and stabilise
its dismal profits.
It announced thousands of layoffs on Sunday. The bank has said
it is cooperating with investigations and working on improving its
processes for detecting and preventing illicit cash flows.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
July 11, 2019 05:27 ET (09:27 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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