Deutsche Bank, a German bank, is facing more problems as it is under investigation by the US Department of Justice (DoJ) in connection to the massive 1MDB scandal, reports the Wall Street Journal.
Deutsche Bank has had a rough week, starting with laying off 18,000 employees and now facing scrutiny over generous sendoffs for senior executives. The bank has been embroiled in several scandals over the past year, some leading to raids on their offices. Additionally, there have been reports of compliance staff concerns being overruled regarding the bank’s relationship with Jeffrey Epstein. Now, the focus is on Deutsche Bank’s involvement with 1MDB.
1MDB, a Malaysian development company established in 2009, has been at the center of a major financial scandal involving embezzlement of over $4.5 billion.
The latest development for Deutsche Bank involves a DoJ investigation into one of its executives. Previously, Goldman Sachs was investigated by DoJ for its dealings with 1MDB, and now the focus is on a former Goldman Sachs executive who later joined Deutsche Bank. The individual and the bank have not been accused of any wrongdoing so far. Deutsche Bank stated that it has cooperated with regulatory and law enforcement inquiries related to 1MDB.
