Another Raid of Deutsche Bank, Another Dead Whistleblower

[Gunnar Larson]

Another Raid of Deutsche Bank, Another Dead Whistleblower
<https://wallstreetonparade.com/2022/04/another-raid-of-deutsche-bank-another-dead-whistleblower/>

By Pam Martens and Russ Martens
<https://wallstreetonparade.com/about-3/about/>: April 29, 2022 ~
[image: Deutsche Bank Headquarters in Frankfurt, Germany]
<https://wallstreetonparade.com/wp-content/uploads/2016/10/deutsche-bank.jpg>

Deutsche Bank Headquarters in Frankfurt, Germany

The Financial Times is reporting this morning that “Germany’s federal
police office, criminal prosecutors and the country’s financial watchdog
BaFin are raiding Deutsche Bank’s headquarters in Frankfurt” this morning,
according to a statement from prosecutors.

The raid comes just four days after the body of Valentin (Val) Broeksmit,
46, was discovered at about 7 a.m. Monday at Woodrow Wilson High School in
El Sereno, just outside of Los Angeles. Val Broeksmit was the son of
William Broeksmit who was found hanged in his London home on January 26,
2014. The senior Boreksmit was a senior executive at Deutsche Bank involved
in assessing risk on the bank’s balance sheet. (See our report: Documents
Emerge in Senate Hearing from William Broeksmit, Deutsche Exec Alleged to
Have Hanged Himself in January
<https://wallstreetonparade.com/2014/07/documents-emerge-in-senate-hearing-from-william-broeksmit-deutsche-exec-alleged-to-have-hanged-himself-in-january/>
.)

According to a profile of Val Broeksmit written by David Enrich
<https://www.nytimes.com/2019/10/01/business/val-broeksmit-deutsche-bank-trump-whistle-blower.html>
in
the New York Times on October 1, 2019, the younger Broeksmit had obtained
“a cache of confidential bank documents” left by his father that provided a
“tantalizing” look into the internal workings of Deutsche Bank. Val
Broeksmit was sharing the documents with the FBI.

Enrich explains what was going on around Deutsche Bank at that time:

“Federal and state authorities were swarming around Deutsche Bank. Some of
the scrutiny centered on the lender’s two-decade relationship with
President Trump and his family. Other areas of focus grew out of Deutsche
Bank’s long history of criminal misconduct: manipulating markets, evading
taxes, bribing foreign officials, violating international sanctions,
defrauding customers, laundering money for Russian billionaires.”

Russian billionaires are now back in the news
<https://www.cnn.com/interactive/business/russian-oligarchs-yachts-real-estate-seizures/index.html>
and
Donald Trump is being fined $10,000 per day
<https://www.reuters.com/world/us/trumps-10000-a-day-fine-ignoring-subpoena-kicks-today-ny-judge-2022-04-26/>
for
failure to turn over documents to the New York State Attorney General’s
office.

David Enrich had written an earlier piece in May of 2019
<https://www.nytimes.com/2019/05/19/business/deutsche-bank-trump-kushner.html?module=inline>
for
the New York Times describing how a Deutsche Bank whistleblower, Tammy
McFadden, and four of her colleagues, had their efforts blocked by the bank
when they tried to file suspicious activity reports on bank accounts
affiliated with Donald Trump and his son-in-law/advisor Jared Kushner. The
suspicious activity reports (SARs) should have been filed with the Federal
agency known as FinCEN (Financial Crimes Enforcement Network) but were
quashed by a unit of the bank that manages money for the super wealthy.

The coroner has not yet released a cause of death for the younger
Broeksmit. His father’s death was ruled a suicide. The two Broeksmits are
not the only individuals connected to Deutsche Bank to have turned up dead.
On October 24, 2014 the body of Calogero Gambino, 41, was found by his wife
hanging from a stairway banister in their Manhattan home. Gambino was a
lawyer for Deutsche Bank who had been cooperating with U.S. regulators on
Deutsche Bank’s involvement in the rigging of the interest rate benchmark,
Libor.

Nor is this the first time that Deutsche Bank’s headquarters have been
raided. As we previously reported, on November 29, 2018, Deutsche Bank’s
headquarters in Germany were raided by 170 members of law enforcement.
Prosecutors said at the time that “Deutsche Bank helped customers found
offshore organizations in tax havens by transferring illegally acquired
money without alerting authorities to suspected money laundering.” On
September 24, 2019 the German police raided Deutsche Bank headquarters for
the second time in less than a year.

Deutsche Bank is a major derivatives counterparty to Wall Street’s mega
banks. The Bank was having serious problems throughout 2019 and in the days
before its trading unit, Deutsche Bank Securities Inc., began to secretly
tap trillions of dollars in cumulative loans from the Fed’s repo loan
bailout facility.

Deutsche Bank’s attempt to merge with Commerzbank fell through in April
2019. It announced a plan to fire 18,000 workers
<https://www.bbc.com/news/business-48901565> in July 2019 and had plans to
create a good bank/bad bank, isolating off toxic assets that it planned to
sell. Deutsche Bank had incurred losses in three of the prior four years.
Its share price had lost 90 percent of its value over the prior dozen years
and was trading close to an historic low in September 2019. The Monday
after the emergency repo loan operations began, Deutsche Bank announced
that it would be moving clients and staff from its prime broker unit (that
makes loans to hedge funds) to BNP Paribas along with its electronic
trading operations.

Newly released documents from the Fed show that on September 17, 2019, the
first day of the Fed’s emergency repo loan operations, Deutsche Bank
borrowed $1.5 billion in a one-day loan. By September 24, Deutsche Bank had
upped its one-day repo loans to $7 billion. By September 25, Deutsche Bank
increased its one-day borrowing to $9 billion. On September 27, Deutsche
Bank took a $3 billion 14-day term loan and rolled over $6 billion in a
3-day loan.

Later documents released by the Fed show that Deutsche Bank borrowed a
cumulative, term-adjusted total of $1.39 trillion from the Fed’s repo loan
program in the fourth quarter of 2019 and another $1.24 trillion in the
first quarter of 2020. The Fed will release data for the second quarter of
2020 on June 30 of this year. The Fed is releasing the information on a
quarterly basis following a two-year lag.

Deutsche Bank units were also secretly bailed out by the Fed during and
after the 2008 financial crisis. According to an audit conducted by the
Government Accountability Office, Deutsche Bank units borrowed a total of
$354 billion in cumulative loans from the Fed’s bailout programs, with the
bulk of that amount coming from the Term Securities Lending Facility (TSLF)
which ran from March 11, 2008 through February 1, 2010.

As *Wall Street On Parade* has previously reported, Deutsche Bank has also
acquired an unseemly history of fines for its illicit activities. Below is
a sampling:

April 23, 2015: Deutsche Bank pleads guilty
<https://www.theguardian.com/business/2015/apr/23/deutsche-bank-hit-by-record-25bn-libor-rigging-fine>
to
the U.S. Department of Justice for its role in rigging the benchmark
interest rate known as Libor. It pays fines of $2.519 billion to various
regulators.

January 17, 2017: Deutsche Bank reaches a settlement with the U.S.
Department of Justice in which it agrees to pay $7.2 billion in fines and
restitution for its improper “packaging, securitization, marketing, sale
and issuance of residential mortgage-backed securities (RMBS) between 2006
and 2007.”

January 30, 2017: Deutsche Bank is fined a total of $630 million
<https://www.reuters.com/article/us-deutsche-mirrortrade-probe/deutsche-fined-630-million-for-failures-over-russian-money-laundering-idUSKBN15E2SP>
by
U.S. and U.K. regulators over claims it laundered upwards of $10 billion on
behalf of Russian investors.

January 29, 2018: Deutsche Bank is ordered to pay $30 million
<https://www.cftc.gov/PressRoom/PressReleases/7682-18> by the Commodity
Futures Trading Commission for manipulating trading in the precious metals
market.

November 8, 2019: Nomura and Deutsche Bank, along with numerous employees, were
convicted
<https://www.reuters.com/article/us-italy-montepaschi-verdict/italian-court-convicts-deutsche-bank-nomura-in-monte-paschi-derivative-trial-idUSKBN1XI1XN>
in
a trial in Italy for helping the Tuscan bank, Monte dei Paschi di Siena,
commit fraud in derivatives deals to help it hide losses.

January 18, 2020: The Commodity Futures Trading Commission fines Deutsche
Bank $10 million <https://www.cftc.gov/PressRoom/PressReleases/8185-20> to
settle two cases: one involving failure to properly report swap
transactions and the other for spoofing.

July 7, 2020: The New York State Department of Financial Services settles a
state civil matter with Deutsche Bank for $150 million over its involvement
with child sex trafficker Jeffrey Epstein.

October 13, 2020: The Frankfurt, Germany Public Prosecutor’s Office fined
Deutsche Bank €13.5 million for failing to submit Suspicious Activity
Reports in a timely fashion regarding potential money laundering activities.

January 8, 2021: The Justice Department and Securities and Exchange
Commission settle charges against Deutsche Bank for $120 million
<https://www.sec.gov/news/press-release/2021-3> for violating the Foreign
Corrupt Practices Act. The charges related to paying bribes to foreign
officials to obtain business.

Why the Fed continues to prop up a serial miscreant is a question that
every concerned American should be asking their representatives in Congress.
-- 
*Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>*
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New York, New York 10001
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