Legal Law

Deutsche Bank may have killed a whistleblower program, but it didn’t break any US laws across 1MDB Mishegas

How big is the Deutsche Bank disaster? How inextinguishable a raging dumpster fire? How does a car accident mutilate? How unsavory a dog’s breakfast is? How unbelievable a Germanic train wreck? Well, dear reader, Deutsche Bank is a powerful black hole that, along with some incredibly stupid pieces of legislation, will consume and destroy the entire whistleblower program of the Commodity Futures Trading Commission.

The executive had provided information that helped the CFTC and Justice Department investigations and led to settlements with Deutsche Bank of approximately $ 2.5 billion in 2015, including $ 800 million with the CFTC. They alleged the bank had manipulated the London Interbank rate, or Libor, a benchmark rate used to set short-term loans for global banks.

Agency officials have claimed there is no mechanism to pay the bank director and other claimants and to continue funding the whistleblower program.

The CFTC pays whistleblowers out of funds it collects for enforcement penalties. However, the agency’s whistleblower fund can only be replenished if it falls below $ 100 million. Under the 2010 Dodd Frank Act, whistleblowers could face anywhere from 10% to 30% of the penalties or settlements with the companies alleged to have committed financial misconduct. The $ 100 million cap for CFTC did not expect a single award to exceed that amount.

In addition to paying bonuses, the money is used to fund the whistleblower office, which attracts and manages whistleblowers, who are the source of or help with approximately one-third of the agency’s active investigations.

In other words, Deutsche Bank is such an unprecedented disaster that eleven years ago no one could have predicted that it would be forced to impose so many fines that a critical part of a federal agency would go bankrupt. With this impressive potential for collateral damage, you would assume that if a regulator decides to view it, they would find something defective. The Ministry of Justice certainly expected this when it opened its umpteenth probe to the Germans, this time because of the dirty and lucrative affair of the 1MBD scandal. But unbelievably no!

The DOJ sent a letter to inform the German bank that the investigation had been completed. The DOJ’s move is a relief as Deutsche Bank was named as a defendant on Monday in a lawsuit filed by 1MDB seeking $ 1.1 billion in payments from the German lender.

Truly an astonishing twist: Deutsche Bank was involved in a massive international fraud case and was unable to take a single sanctionable measure. Absolutely remarkable. Well done guys.

Deutsche Bank 1MDB probe dropped by the US Department of Justice [Bloomberg]CFTC whistleblower program at risk over potential payout of more than $ 100 million [WSJ]

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