Deutsche Bank will pay $16 million fine for hiring through connections daughter of the Russian Deputy Minister and incompetent son of a top Manager
Photo: Tony Webster / flickr.com
According to the U.S. Commission on securities and exchange Commission (SEC), of the violations occurred in 2009-2012
Photo: Don Ramey Logan / commons.wikimedia.org
Deutsche Bank will pay more than $ 16 million penalty after being accused of hiring relatives of the Russian and Chinese officials to bypass its own stringent requirements for a variety of benefits. According to the U.S. Commission on securities and exchange Commission (SEC), of the violations occurred in 2009 and 2012.
SEC refers to the five cases of such employment. In two cases we are talking about the daughter of an unnamed Deputy Minister of the Russian government and the son of a top Manager of a certain company. So, in 2009, the Deputy Minister asked the Director of the office of Deutsche Bank in Russia to arrange his daughter to the office in Moscow, London or new York.
She took an Intern in Moscow office of Deutsche Bank, promised in the future a permanent job in London. However, after four months the Bank has not received from the Russian authorities the contract, which is expected. In the end, the daughter of an official was transferred to London, and 10 days after that, Deutsche Bank has been signed by the father of the girl offer connected with issue of Eurobonds in the amount of 2 billion euros.
«Vedomosti» suggested that it could be about the daughter of a former Deputy Finance Minister Dmitry Pankin, Elena Arkhangelskaya. In addition, Deutsche Bank has issued illegally as business expenses of the Director of the Russian office of the Bank and his wife on vacation with the Russian Deputy Minister and his family.
As for the son of a top Manager, he has shown such poor results that he was fired. According to the SEC, a young man briefly worked at the Moscow office of Deutsche Bank in 2010 requested a transfer to London. Because of the high position of his father’s Bank made a move, but in two months afterwards, the personnel Department requested the deletion of the employee from the London program because he missed work, cheated on the exam and became a «burden for the program, not to mention the Bank.»
The same practices of Deutsche Bank, according to the SEC, were taken against citizens of China. Thus, the Bank violated U.S. laws on corruption and illegally enriched 10.7 million dollars. Deutsche Bank agreed to settle claims by the SEC, without admitting guilt, but not denying the violations. «Deutsche Bank has sufficiently contributed to the SEC investigation and took a number of measures to improve the Bank’s practices in the recruitment,» said the Bank.