As Trump Fights Subpoenas, Federal Authorities Are Reportedly Investigating Deutsche Bank

Deutsche Bank logo

Deutsche Bank logo

The employees said the bank's management stopped suspicious activity report filings to federal law enforcement that involved entities controlled by Trump and Kushner, who is a senior White House adviser. This investigation has also enmeshed Deutsche Bank because it continued to lend Trump money when other banks wouldn't.

A watchdog group demanded on Wednesday that the Federal Reserve System (FRS) investigate whether Deutsche Bank has been complying to anti-money laundering laws in light of "questions of impropriety" on behalf of clients President Donald Trump and his son-in-law, Jared Kushner. McFadden is an anti-money laundering expert, and at the time told Deutsche Bank about the transactions and that she found "money had moved from Kushner Companies to Russian individuals". In 2017, her colleagues flagged suspicious transactions involving President Trump's companies, but it's unclear if Trump's transactions are part of this new probe.

Authorities also reportedly contacted Val Broeksmit, the son of late Deutsche bank executive William S. Broeksmit. In addition to the FBI, the Justice Department's Money Laundering and Asset Recovery Section in Washington, and the USA attorney's offices in Manhattan and Brooklyn in NY are conducting the investigations.

Over the past two decades, it was the only mainstream financial institution consistently willing to do business with Mr. Trump, who had a history of defaulting on loans. The bank lent him a total of more than $2 billion, about $350 million of which was outstanding when he was sworn in as president.

Deutsche Bank has always been a principal lender for Trump's real estate business. The judge refused to grant a preliminary injunction that Trump's lawyers asked for to prevent Deutsche Bank from complying with a congressional subpoena, which was bad news for the president.

FILE PHOTO: The Deutsche Bank headquarters are seen in Frankfurt, Germany October 29, 2015.

In early 2017, federal and state regulators in the United States and British authorities imposed hundreds of millions of dollars in civil penalties on Deutsche Bank for that misconduct, but prosecutors never brought a criminal case against the bank. The man's son reportedly supplied the government with internal bank documents and messages.

In 2017, regulators fined Deutsche Bank almost $700 million for weak controls that allowed money laundering from Russian Federation. The official line was that McFadden was sacked for not reviewing enough transactions. The foundation was organized to donate proceeds from Trump's book, "Trump: The Art of the Deal", to charitable causes. In both instances, the suspicious activity reports were never filed with the Treasury Department.

There is no indication that Kushner Cos is under investigation. The NYT reported a Trump Organization spokeswoman as saying she was unaware of Deutsche flagging any transactions.

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