Deutsche Bank repeatedly failed to secure work with a Russian government unit when contacted with a proposal: Hire the daughter of a senior official in the organization.
"We must do it!" said a senior Deutsche Bank official, according to the Securities and Exchange Commission. "We should have her in London, as it is NOT politically correct to have her in Moscow!"
The woman was hired with a promise of a permanent position in London, according to allegations described in an SEC settlement agreement. Ten days after the move was completed, the father of new employee Deutsche Bank sent a request for a proposal for a bond agreement worth more than $ 2 billion, an agreement that the bank eventually won.
The SEC order describes many alleged breaches by the bank in the Foreign Corruption Act of 1977, saying that the bank provided jobs to relatives of foreign government officials in an attempt to influence officials to manage the bank's business. Deutsche Bank agreed to settle the SEC's charges late last week by paying $ 16 million, though it did not admit wrongdoing.
In another case, a top executive in a Russian state-owned entity asked the bank to hire his son, who also wanted to work in Deutsche's London office, according to the SEC. A London-based Deutsche staff member labeled the move as "the classic Nepo situation we have every year" but was misled.
After just two months, the human resource executive wanted his son fired despite his father's position. He had failed to come to work, failed an exam and was "responsible for the program, if not the company," Deutsche employees said.
Instead, the son was transferred back to Moscow, where he continued to work for two more months, according to the SEC document.
The episodes are among several controversies that haunt Deutsche Bank. The German bank is also undergoing major reorganization and is facing intense scrutiny of the relationship with President Trump and his businesses.
A Deutsche Bank lawyer appeared to frustrate a federal appeals court Friday by refusing to say whether the bank had a copy of Trump's tax returns. The court, which heard evidence in a lawsuit filed by Trump, gave the bank Tuesday afternoon to respond in writing.
When a global power plant, serving the American elite from a tower on Wall Street, Deutsche Bank's fortunes have waned in recent years, and in July, it announced a comprehensive restructuring, including the cessation of stock and bond trading and the reduction of other investment banking operations . The overhaul will mean as many as 18,000 jobs cut in 2022 by its 90,000 workers.
To prevent efforts to recover there have been various investigations of the bank's behavior. It is at the center of one of the biggest money laundering cases in history, involving Danske, Denmark's largest bank.
Last week, Deutsche Bank SEC charges that it violated foreign bribery laws between 2006 and 2014 by offering valuable jobs to relatives of foreign government officials it wished to cooperate with. In addition to the cases involving Russian entities, the SEC also reported on several cases involving China.
In one case, a Deutsche employee revised the resume of the son of a company executive whom he hoped to work with. The original resume was full of typos and grammatical errors, according to the SEC statement.
In another, the bank hired the son of the chairman of a Chinese state-owned enterprise. The executive son was rejected for the job twice before a high-level Deutsche leader weighed in, the SEC settlement agreement said.
"Deutsche Bank cooperated significantly with the SEC in its investigation and has implemented many remedial actions to improve the bank's hiring practices," the bank said in a statement. Deutsche Bank has said it is cooperating with all investigations, including those of the two House committees.
Trump appeals a court order clearing the way for Deutsche Bank and Capital One to reverse years of financial records from the president, his three oldest children, and the president's companies to the House Intelligence and Financial Services committees.
During the hearing Friday, the judges asked the bank's attorney what seemed like a simple question: If the subpoenas were upheld, would the tax return to the president or anyone else associated with the case being turned around?
Deutsche Bank's advo Kat repeatedly refused to respond, citing "contractual obligations." It now has until Tuesday at 4 p.m. to send a letter to the court answering the question. It is unclear whether the answer will be made public.
Trump's company has raised around $ 364 million in loans from Deutsche Bank since 2012, according to public filings. The loans included two worth $ 125 million to buy and renovate Doral Florida golf course, a $ 170 million loan to turn Washington's old post office into a Trump hotel, and a $ 69 million loan to refinance a existing Trump hotels in Chicago.
"You have a situation where Mr. Trump is going to Deutsche Bank and asking for very large loans when no other bank appears to be touching him," Douglas Letter, attorney general for the House, told the Appeals Court last week. "For obvious reasons, both committees here want to know why is it that Deutsche Bank would be willing to lend a large sum of money to Trump.
Trump's attorney, Patrick Strawbridge, told the court that the committees were pushing the limits of their powers to to target and embarrass the president, Trump is struggling to gain access to tax returns and other detailed financial information in courts across the country.
David A. Fahrenthold contributed to this report.