Trump, Putin & Co. - Deutsche Bank’s questionable clientele | DW Documentary
DW Documentary・2 minutes read
Numerous scandals, fines, and controversies plagued Deutsche Bank under the leadership of Josef Ackermann, including money laundering schemes, unethical practices, and involvement with high-profile individuals like Putin and Trump. Despite significant clean-up efforts by Christian Sewing, the bank's image continued to suffer, facing declining share prices and speculation about a potential buyout.
Insights
- Josef Ackermann's ambitious vision for Russia's integration into Europe, marred by unethical practices and money laundering schemes, led to significant accusations and legal repercussions, tarnishing his reputation and impacting Deutsche Bank's operations.
- The tumultuous relationship between Deutsche Bank and Donald Trump, marked by loans, defaults, and lawsuits, culminated in a PR nightmare for the bank following Trump's election as US president in 2016, highlighting the complexities and risks of the bank's dealings with high-profile individuals.
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Summary
00:00
Deutsche Bank Scandals: From Europe to Trump
- In 2010, Lena Meyer-Landrut won the European Eurovision Song Contest, while a devastating explosion occurred on the Deepwater Horizon drilling rig in the Gulf of Mexico.
- Christian Wulff was elected German President, and 21 people died at the Love Parade disaster in Duisburg.
- A raid on Deutsche Bank led to accusations against Josef Ackermann, who had turned the bank into a major player on Wall Street, but faced staggering accusations of criminal activities.
- Ackermann's ambitious vision for Russia's integration into Europe was short-lived, as his connections to Putin led to unethical practices and involvement in money laundering schemes.
- Tim Wiswell, head Moscow stock trader at Deutsche Bank, married Russian art historian Natalia Makosiy, leading to their involvement in a nightmare for the bank.
- Deutsche Bank's involvement in money laundering in Moscow, through mirror trades, led to a fine of $60 million imposed by the US Securities and Exchange Commission.
- The money laundering scheme involved billions being transferred from Moscow to London, with connections to high-profile individuals like Vladimir Putin's cousin and terrorism funders.
- Tim Wiswell played a key role in the money laundering scheme, but Deutsche Bank's management also bore responsibility for the illegal activities.
- Donald Trump, despite his dubious reputation, received loans worth hundreds of millions from Deutsche Bank, leading to a tumultuous relationship marked by defaults and lawsuits.
- Trump's election as US president in 2016 brought scrutiny to Deutsche Bank's dealings with him, becoming a PR nightmare for the bank and a highly embarrassing chapter in its history.
18:38
Ackermann's Deutsche Bank Era: Fines and Controversy
- In 2012, "Skyfall" was released, Joachim Gauck became German Federal President, Borussia Dortmund won the German national football championship, and a cruise ship captain ran aground off the coast of Italy.
- The Institute of International Finance held a celebration at Kronborg Castle near Copenhagen in June 2012 in honor of Josef Ackermann, following his resignation as CEO of Deutsche Bank.
- Ackermann was considered the chief diplomat of the international financial industry, but his dual roles were seen as potentially overwhelming.
- Ackermann's leadership at Deutsche Bank saw the share price drop significantly, leading to protests and frustration among shareholders.
- Anshu Jain and Jürgen Fitschen succeeded Ackermann at Deutsche Bank, with Jain's promotion causing some surprise.
- Ackermann appreciated Jain as an investment banker but did not see him fit for the CEO role at Deutsche Bank.
- Ackermann's involvement with Russian oligarch Viktor Vekselberg and his work in Cyprus raised ethical concerns.
- Ackermann's involvement in restructuring the Bank of Cyprus and combating money laundering raised eyebrows given his past at Deutsche Bank.
- Anshu Jain faced criticism from BaFin for improper management and organization at Deutsche Bank, leading to his resignation.
- Ackermann's era at Deutsche Bank was marked by significant fines and settlements, totaling between 15 and 20 billion euros, overshadowing the bank's profits.
36:39
Deutsche Bank's Leadership Changes and Challenges
- Under Ackermann’s leadership, annual bonus payments at Deutsche Bank rose to 4.3 billion euros, but after his departure, they decreased to 0.5 billion by 2016.
- Christian Sewing, the new leader, faces significant clean-up costs from fines and legal fees due to his predecessors, aiming to instill new values and control greed, although bonuses rose from 0.5 billion to 2.1 billion between 2016 and 2021.
- Deutsche Bank's investment banking department in Moscow closed in 2015 due to a money laundering scandal, while the bank's image has deteriorated, with its share price dropping significantly after the war in Ukraine, leading to speculation about a potential buyout.
