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900 clients are suspected of using its Regula subsidiary to avoid taxes so Frankfurt’s state prosecutors will search the homes of people who it suspects of using a company formerly owned by Germany’s biggest bank for tax evasion and money laundering by using its Regula subsidiary to avoid taxes.

Deutsche Bank helped clients shift criminal money, identifying more than 300 million euros ($339 million) that had allegedly flowed to the British Virgin Islands registered vehicle in 2016. Roughly 170 criminal police officers, prosecutors and tax inspectors searched Deutsche Bank offices in and around Frankfurt, Germany, November 29, 2018, on money laundering allegations.
29 March 2018 HAMILTON, Bermuda– The Bank of N.T. Butterfield & Son Limited (“Butterfield”) (NYSE: NTB) (BSX: NTB.BH) today announced that it has completed the acquisition of the Deutsche Bank Global Trust Solutions (“GTS”) business (excluding US operations). Former GTS employees and accounts have successfully transitioned to Butterfield and all trust and fiduciary services for former GTS clients will be conducted from Butterfield locations in the Cayman Islands, Guernsey, Switzerland, Singapore and Mauritius with effect from 2 April 2018.

Butterfield announced on 25 October 2017 that it had reached an agreement with Deutsche Bank to acquire GTS and take over the ongoing management and administration of the GTS portfolio. Over 60 Deutsche Bank employees have joined Butterfield as part of the acquisition to provide continuity of service for clients.
Regula Limited operates as a subsidiary of The Bank of N.T. Butterfield & Son Limited

[February 5 2018 Banamex ]

Kenneth A. Blanco

Kenneth Blanco

Trump’s Justice Department is now raising eyebrows for handing another unit of Citigroup a non-prosecution agreement May 18 2017 for egregious money laundering violations.

jump to Banamex items

[ January 23 Kushner: suspicious monies through Deutsche Bank…denied ]

Screenshot 2018-01-09 at 9.58.01 AM

Deutsche Bank on January 22 denied a magazine report that said that the bank had reported to German banking supervisors suspicious funds associated with Jared Kushner, U.S. President Donald Trump’s son-in-law and advisor.

The Manager Magazin article, translated from German, reports. “Their finding: There are indications that Donald Trump’s son-in-law or persons or companies close to him could have channeled suspicious monies through Deutsche Bank as part of their business dealings.”

[ January 9: Putin friend Uzbek-born Lev Leviev and Jared Kushner ]

Jared Kushner’s association with Deutsche Bank is among a number of financial matters that could come under focus as his business activities are reviewed by special counsel Robert Mueller, who is examining Kushner as part of a broader investigation into possible Russian influence in the election.
One month before Election Day, Kushner’s real estate company finalised a $285 million loan as part of a refinancing package for its property near Times Square in Manhattan.
The loan came at a critical moment. Kushner was playing a key role in the presidential campaign of his father-in-law, Donald Trump. The lender, Deutsche Bank, was negotiating to settle a federal mortgage fraud case and charges from New York state regulators that it aided a possible Russian money-laundering scheme. The Deutsche Bank loan was delivered just before the bank – which has long been under investigation by federal and state authorities – agreed to pay a $7.2 billion US penalty in December for mortgage securities fraud in its packaging of residential mortgages. The bank also paid a $425 million New York state fine in January for failing to properly track large transfers from Russia.
The Deutsche Bank loan capped what Kushner Cos. viewed as a triumph: It had purchased four mostly empty retail floors of the former New York Times building in 2015, recruited tenants to fill the space and got the Deutsche Bank loan in a refinancing deal that gave Kushner’s company $74 million more than it paid for the property.
The refinancing loan with Deutsche Bank is mentioned in documents filed with the Securities and Exchange Commission as part of a public offering of mortgage-backed securities. It states that Kushner and his brother, Joshua, “will be guarantors” under what was called a “nonrecourse carve-out.” Such guarantees require more than a loan default to kick in. They are commonly known as “bad boy” clauses, a reference to how a lender could seek to hold the guarantor responsible for the debt under circumstances that might include fraud, misapplication of funds or voluntary bankruptcy deemed inappropriate. The terms of the guarantee, which generally are not secured by collateral, are negotiated between lender and borrower.
“The way to look at this is, so long as you’re not a ‘bad boy’ and don’t do anything wrong, you have nothing to worry about,” said James Schwarz, a real estate lawyer who is an expert in such clauses. “To the extent you would do something fraudulent, then you have things to worry about.”
The Deutsche Bank deal was one of the last Kushner orchestrated before joining the White House. It is among the dozens of complex transactions that he was involved with during his decade in the real estate business.
Although Kushner divested some properties in an effort to address potential conflicts, he retains an interest in nearly 90 percent of his real estate properties, including the retail portion of the former New York Times headquarters, and holds personal debts and loan guarantees.
The deal that led to the Deutsche Bank loan is rooted in a holiday party held in late 2014 at the Bowlmor bowling alley, which is located in the retail portion.
At the party, Kushner decided that the four retail floors of the building, while rundown, could be transformed into a thriving tourist destination, according to his associates.
The building passed through several owners after the newspaper sold the property for $175 million in 2004 to Tishman Speyer. Tishman sold it three years later for $525 million to a company called Africa-Israel Investments. (Those transactions prompted Trump a few months ago to poke fun at the Times, tweeting that the “dopes” at the newspaper “gave it away.”)
Africa-Israel’s decision to purchase the building was made by its chairman, an Uzbek-born Israeli citizen, Lev Leviev. He is one of the world’s wealthiest men, known as the “King of Diamonds” for his extensive holdings in Africa, Israel and Russia. He was then expanding his real estate holdings in New York City.
Leviev told the New York Times shortly after the building’s purchase that he was a “true friend” of Russian President Vladimir Putin, largely through his work with an influential Jewish organisation in the former Soviet Union. The newspaper wrote that he kept a photo of Putin in his office in Israel. Leviev’s company said in a statement to The Post that Leviev “does not have a personal relationship” with Putin but has met him “on a few occasions.” Leviev’s statement said he was referring to his belief that “Mr Putin has been a ‘true friend’ to the Jewish people in Russia.”
In 2008, a year after the building’s purchase, Leviev invited Trump to his Madison Avenue store, an ultra-high-end establishment called Leviev Jewelry, where they were photographed together, according to the Leviev statement. Leviev hoped to work with Trump on Moscow real estate deals, according to an article in Kommersant, a Russian newspaper. The Leviev statement said that the two “never had any business dealings with one another, contrary to speculation.”
Six years later, Kushner saw an opportunity for his own company.
Leviev, whose company was having financial difficulties, according to an Israeli press account, sold the building’s 12-floor office portion for $160 million, a transaction that did not involve the four retail floors.
Leviev’s daughter, Chagit, took charge of her father’s US subsidiary and set out to find a buyer for the retail portion of the building. The company said it would entertain offers no lower than $300 million.
Kushner’s company offered $265 million, which was rejected. Kushner himself then negotiated with Chagit Leviev and others in 2015 and succeeded with a $296 million offer, according to an official involved in the matter. “It was a very hard back-and-forth New York negotiating style,” said Kushner’s broker, Lon Rubackin. Leviev’s partner in the deal, Five Mile Capital, did not respond to a request for comment.
Few knew it at the time, but the negotiations had nearly consummated when Kushner and his wife, Ivanka Trump, ran into Chagit Leviev on May 4, 2015, at an after-party for a Metropolitan Museum of Art gala – an encounter that was memorialised in a picture posted on Instagram.
“Such a pleasure seeing @jaredckushner and his stunningly beautiful wife @ivankatrump last night [at] the #metballafterparty,” Chagit Leviev wrote.
The deal was signed a week later and closed in October 2015. The Leviev company said in a statement to The Post that Kushner simply made the highest offer and “there was no political element to the transaction.”
Kushner took over a property that was only 25 percent leased, according to a company official. His company recruited tenants, offering some a year’s free rent to lock in long-term contracts, according to an SEC filing. As a result, the building was nearly fully leased, with higher rents, including new tenants such as National Geographic.
The strategy paid off when Kushner’s company went to Deutsche Bank for refinancing. An appraisal cited in SEC filings for the package of mortgage-backed securities placed the value at $470 million, a 59 percent increase in a year. The bank declined to release the appraisal, but a person involved in the deal said that such a rapid increase was unusual when New York real estate was rebounding from recession, and credited Kushner for finding stellar tenants.
In a statement, Kushner Cos. President Laurent Morali said the property’s value increased sharply “for a simple reason: the building’s dramatic turnaround. We had a vision for the property when we purchased it that no one else had, and are proud to say that we executed on it.”
Kushner’s company took out $370 million in new loans in October 2016, giving it $74 million more than the purchase price a year earlier. Along with $285 million from Deutsche Bank, Kushner’s firm received $85 million from SL Green Realty, where Kushner had once worked as an intern. SL Green spokesman Rick Matthews said the deal made sense because the building has been mostly leased, giving it “increased value.”

[January 4 Preet Bharara was fired and Prevezon case was dropped. Trump helping Russians? ]

Prevezon is a holding company with links to Russian elites that has been accused of laundering hundreds of millions of dollars through New York City real estate. It’s also part of Hermitage Capital, an investment fund that was being investigated by Magnitsky (the Russian lawyer who was killed in a Moscow prison in 2009) more than 10 years ago.
Several months after Trump takes office, the Prevezon case is dismissed. So what happened? The U.S. attorney was carefully preparing a case against Prevezon Holdings. They were all set to go forward, and then suddenly the case was settled. Prevezon’s own lawyers were kind of shocked. We know they paid something like $6 million, which is a fraction of what the lawsuit was about. So they were extremely happy about it.
But it’s not even necessary for him to have any direct connections here. They’re only asking for some relief in this case, in return for certain compromising documents. So the interesting thing for me [Seva Gunitsky, politics professor at the University of Toronto] is, was there pressure placed on the U.S. Attorney’s Office by the administration, by the Department of Justice? What we know is that Preet Bharara, the attorney in charge of the case, was fired in early March, and shortly thereafter the Prevezon case was dropped.

Congressional Democrats have openly expressed concerns about what happened here. They want to know why it was settled so quickly. Was pressure being applied from above? In any case, we can see the possible motivations of the people approaching Trump for favors. When I say the collusion starts with financial interests, this is what I mean.

It’s not that obstructing democracy wasn’t important; it’s that it was potentially a happy byproduct of these financial relationships.

I’m not saying the political dimension is unimportant — surely it is. But if we’re talking about the roots of the collusion, we have to look at where Trump’s links with Russia begin. And it begins with money. [These roots] don’t start with the election; they start with money, and namely Russian oligarch money. This doesn’t start with the election; it starts with Russian oligarch money pouring into Trump’s real estate and casino businesses. Many of them Trump has been working with for years, well before he developed any serious political ambitions. And we’re not talking about small change here; we’re talking about hundreds of millions of dollars. Possibly even enough to keep Trump out of another bankruptcy.

We know because they’ve told us. We can talk about specific cases in a minute, but Donald Trump Jr. has already admitted the importance of Russian money to their business ventures. He said publicly in 2008 that “Russians make up a pretty disproportionate cross-section of a lot of our assets. We see a lot of money pouring in from Russia.” It doesn’t get much clearer than that.

[January 4 Fire and Fury Deutsche Bank ]

Stephen Kevin Bannon,media executive, political activist, and former investment banker, speaking to author Michael Wolff, “It’s as plain as a hair on your face.”

Last month it was reported that federal prosecutors had subpoenaed records from Deutsche Bank, the German financial institution that has lent hundreds of millions of dollars to the Kushner property empire. Bannon continues: “It goes through Deutsche Bank and all the Kushner shit. The Kushner shit is greasy. “
Fire and Fury: Inside the Trump White House,

[ December 5 2017 Learn money laundering via Trump ]

[August 21]

trump20tower20batumi

Robert Mueller has assembled a team of sixteen lawyers. One of them is fluent in Russian, and five have extensive experience investigating and prosecuting cases of money laundering, foreign corruption, and complex financial conspiracies. The path from Trump to Putin, if one exists, might be found in one of his foreign real-estate deals.
A stalled 2011 plan to build a Trump Tower in Batumi, a city on the Black Sea in the Republic of Georgia, has not received much journalistic attention. The deal, for which Trump was reportedly paid a million dollars, involved unorthodox financial practices that several experts described to me as “red flags” for bank fraud and money laundering; moreover, it intertwined his company with a Kazakh oligarch who has direct links to Russia’s President, Vladimir Putin. As a result, Putin and his security services have access to information that could put them in a position to blackmail Trump. (Sekulow said that “the Georgia real-estate deal is something we would consider out of scope,” adding, “Georgia is not Russia.”)

The developer that had paid Trump and invited him to Georgia—a holding company known as the Silk Road Group—had been funded by a bank that was enmeshed in a giant money-laundering scandal.

Trump Tower Batumi was going to be funded not by Trump but by businesses with ties to Kazakh oligarchs, including Timur Kulibayev, the son-in-law of Kazakhstan’s autocratic ruler, Nursultan Nazarbayev, and a close ally of Putin.

The Financial Action Task Force, headquartered in Paris, is led by representatives from thirty-seven nations. In 2007, the task force issued a report about the use of real-estate projects for money laundering. The report makes note of several red flags. It warns of “complex loans” in which businesses “lend themselves money, creating the appearance that the funds are legitimate.” It also warns of the use of offshore shell companies and tangled corporate legal structures, especially those in which third parties are hired to administer a company and conceal its true ownership. These intertwined companies can then trade property among themselves, in order to create inflated valuations: “An often-used structure is, for example, the setting up of shell companies to buy real estate. Shortly after acquiring the properties, the companies are voluntarily wound up, and the criminals then repurchase the property at a price considerably above the original purchase price. This enables them to insert a sum of money into the financial system equal to the original purchase price plus the capital gain, thereby allowing them to conceal the origin of their funds.”
The report states that money launderers often find that “buying a hotel, a restaurant or other similar investment offers further advantages, as it brings with it a business activity in which there is extensive use of cash.” Casinos—like the one planned for the Trump Tower Batumi—are especially useful in this regard. The casino was to be owned by the Silk Road Group and its partners.
Alan Garten, the chief legal officer for the Trump Organization, declined to describe the due diligence behind the Batumi tower. When the deal was signed, the general counsel for the Trump Organization was Jason Greenblatt, who is now President Trump’s envoy to negotiate Middle East peace. (The White House declined to comment for this story, referring me instead to Sekulow, Trump’s lawyer, who also declined to discuss the specifics of the Batumi deal.)

Ross Delston, a prominent anti-money-laundering attorney in Washington, D.C., told me that, if one of his clients approached him with the possibility of entering a licensing relationship with the people involved in the Batumi deal, he “would tell him not to walk away but to run away—to run like hell.” He explained, “There are too many aspects of the deal that don’t make sense, and there’s no way, as an outsider, that you could conduct sufficient due diligence to figure out if it is criminal.”
So many partners of the Trump Organization have been fined, sued, or criminally investigated for financial crimes that it is hard to ascribe the pattern to coincidence, or even to shoddy due diligence. In criminal law, there is a crucial concept called “willful blindness”: a person can be convicted of a crime even if he was unaware of certain aspects of the crime in which he was engaged. In U.S. courts, judges routinely explain to juries that “no one can avoid responsibility for a crime by deliberately ignoring what is obvious.” (When the Trump Organization cancelled the Batumi deal, it noted that it held the Silk Road Group “in the highest regard.”)

http://www.newyorker.com/magazine/2017/08/21/trumps-business-of-corruption

[June 5 2016 Hank Greenberg can be sued for hiding insurance company’s losses]

AIG Broadway

American International Group

The New York Court of Appeals ruled that state officials can try to recover millions of dollars in bonuses and interest from Former American International Group CEO Maurice “Hank” Greenberg , 91, and his co-defendant, Howard Smith, 71, former AIG chief financial officer.In 2005, then-Attorney General Eliot Spitzer accused Greenberg and Smith of using fraudulent transactions to hide the insurance company’s losses and mislead investors about its financial condition.

Greenberg’s lawyer, David Boies, later tried to get the charges dismissed, arguing that a $115 million settlement between AIG executives such as Greenberg and a group of shareholders should have ended the case. But the court rejected that argument and ordered the trial to proceed. More than $55 million may be at stake. In addition, the court said the state could seek to ban Greenberg and Smith from the securities industry and from serving as officers or directors of public companies. The U.S. government in a separate case last August appealed a judge’s ruling that sided with Greenberg on a legal claim over AIG’s bailout and found that the Federal Reserve exceeded its authority in the insurer’s bailout.
The case centers on a transaction with General Re, a unit of Warren Buffett’s Berkshire Hathaway. The New York suit claims Greenberg orchestrated a $500 million transaction that boosted loss reserves without transferring risk. A second transaction, with Capco Reinsurance Co, allegedly hid a $210 million underwriting loss in an auto-warranty program
The People of the State of New York by Eric T. Schneiderman v. Maurice R. Greenberg

[April 4 Americans in Panama Papers: ‘Wait. Just look at what’s coming…’ ]

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Americans later

Jen Mills for Metro.co.uk   But weirdly, considering it’s the world’s largest economy, there was nobody from the USA   .Stefan Plöchinger, digital editor of German newspaper Süddeutsche Zeitung which obtained the leaks, shot out this teaser earlier today, saying: ‘Wait. Just look at what’s coming…’

many items below

[August 17 2015 Carlos Hank Rhon and Banamex under DoJ subpoenas ]

Justice Department is examining anti-money laundering practices at Banco Nacional de Mexico, Citigroup’s Mexico unit known as Banamex, to see if any of its clients were involved in money laundering, Justice wanted Citigroup (C.N) to provide information on accounts tied to four businesses affiliated with Hank Rhon, two units each of Grupo Financiero Interacciones SA (GFINTERO.MX) and Grupo Hermes SA, which are controlled by Hank Rhon and his family as well as a fifth firm, Banco Monex, that’s not connected to Hank Rhon. Hank Rhon, a businessman involved in banking, construction and heavy industry, is the son of Carlos Hank Gonzalez, a longtime force in Mexico’s ruling party who died in 2001.
more Banamex

Carlos Hank Rhon’s fortune includes assets in the financial, industrial, real estate and transportation industries. His best-known company is bank holding company Grupo Financiero Interacciones, where he and his family own a 74% stake. In 2014 his son, Carlos Hank González, left the company when he became chairman of the board of another banking conglomerate, Grupo Financiero Banorte, in which his mother’s family has a 12% stake. In addition to Interacciones, Hank Rhon owns Grupo Hermes, an industrial conglomerate with interests in construction, infrastructure projects, energy, transportation, tourism and auto dealerships. He is the son of one of Mexico’s best-known politicians, the late Carlos Hank Gonzalez, who held several key government positions including Mexico City mayor, Secretary of Agriculture and governor of his home state of Mexico. [Clear?]
Jorge Hank Rhon (born January 28, 1956) is a Mexican politician, businessman and owner of Mexico’s largest sports betting company, Grupo Caliente. An eccentric and controversial personality, he served from December 2004 to February 2007 as the president of the municipality of Tijuana. He is the son of former Mexico City mayor Carlos Hank González and Guadalupe Rhon.Hank has long been target of diverse rumors and accusations. Tijuana

[August 17 Doral Bank pair charged with $2.35 million wire fraud and money laundering]

 Doral search was being conducted by the white-collar crime unit regarding a federal offense

Doral search was being conducted by the white-collar crime unit regarding a federal offense

Doral could possibly be taken over by the FDIC Friday, people with knowledge of the matter told. A federal grand jury returned a 13-count indictment Feb. 18 charging Defendant Annelise I. Figueroa and Defendant Rolando Rivera Solis with financial institution fraud, misapplication of $2.35 million in bank funds, wire fraud and money laundering.9whavqzz

[December 26 2014 Doral Bank raid connected to 2011 unsolved murder?]
Federal Bureau of Investigation agents entered the Doral Bank’s offices about 8:15 a.m december 23. in San Juan to collect information including computers and documents, the Doral search was being conducted by the white-collar crime unit regarding a federal offense. However, she said she wouldn’t exclude the possibility that the probe may also relate to the 2011 murder of a Doral executive, Maurice Spagnoletti. The raid took place at the bank’s information technology offices in Hato Rey.
Spagnoletti, 56, was shot while driving home from work to the fashionable Condado beach front district in rush-hour traffic in June 2011 after leaving the Bank, in what authorities said was a professional execution. At that time, the man was Executive Vice President of Doral Bank, a position he occupied for six months.
Following the execution of Spagnoletti, his widow and daughter, Marisa and Lucy , respectively, filed a lawsuit civil at the federal level in 2013 for “wrongful death” or death by negligence, involving officers of the Bank, including its President Glen Wakeman. However, they withdrew the demand in January 2014.
In the lawsuit, the relatives of Spagnoletti claimed that he received threats after he found fraudulent bank transactions and advised President Glen Wakeman should dismiss Annelisse Figueroa, who was Executive Vice President of operations together with the head of security Jose Robles and Vice President, Chief compliance and Chief Legal, Enrique Ubarri Baragaño, defendants in the action.

Since 2012, Doral Bank has been operating under a consent agreement with the Federal Deposit Insurance Corp. and parallel sanction by the Federal Reserve Bank of New York, which required the directors to set policies and closely monitor the bank’s financial reporting, among other things, according to the complaint.
But the company ended up surprising investors on March 18 when it said it could not file its Form 10-K report for 2013 on time because it discovered material weakness in its accounting controls, Fair View said in its complaint. The bank subsequently revised its reported loss for the quarter ending Sept. 30 to $2.57 per share from $1.49 a share, it said.
Spagnoletti was president of Greenville-based Carolina First Bank, a subsidiary of The South Financial Group Inc., from April 2006 to June 2008.
fraud

[October 15 Citigroup Inc. fined $2 million in Oceanografía- Banamex]

Luis Robles and Javier Arrigunaga

Luis Robles and Javier Arrigunaga

The Mexican regulator, the CNBV, said October 15 that in its review of Oceanografía’s relationship with Banamex, it found actions that could be considered crimes. it has fined the local unit of Citigroup Inc.a little more than $2 million for failing to prevent an alleged fraud against the bank by a client, oil-services firm Oceanografía.
The regulator also said that Banamex should have had better internal controls in place to prevent such losses.The incident also has led to the departure of high-level employees at the bank, with Citigroup announcing this month that Banamex Chief Executive Javier Arrigunaga had resigned.

[June 30 BNP “perpetrating what was truly a tour de fraud,” pleads guilty]

BNP’s general counsel, Georges Dirani, in a Manhattan court on June 30.

BNP hid the names of Sudanese and Iranian clients when sending transactions through its New York operations and the broader American financial system. In the bank’s Geneva office, “there was policy to strip, amend and omit” information identifying Sudanese clients. “This conspiracy was known and condoned at the highest levels of BNP,” Edward Starishevsky, an assistant district attorney in Manhattan, said in court on Monday when the bank pleaded guilty to one count of falsifying business records and one count of conspiracy. BNP agreed to pay an $8.9 billion penalty

http://www.glassdoor.com/Salary/BNP-Paribas-New-York-City-Salaries-EI_IE10342.0,11_IL.12,25_IM615.htm
[June 21]

French bank BNP Paribas and the U.S. government are close to settling the criminal investigation of the bank for between $8 billion and $9 billion.
According to U.S. prosecutors, the bank conducted at least $30 billion of illegal transactions on behalf of companies and government agencies in Sudan over a period of five years, violating U.S. sanctions. In addition to paying a record fine, the bank is expected to plead guilty to conspiring to violate the International Emergency Economic Powers Act and agree to a temporary prohibition on its ability to conduct transactions in U.S. dollars. Although the fine seems huge compared with those paid by other banks in comparable cases, prosecutors feel that it’s justified because of the severity of the misconduct as well as the fact that BNP didn’t cooperate as fully as the government would have liked.
The bank conducted at least $30 billion of illegal transactions on behalf of companies and government agencies in Sudan over a period of five years, violating U.S. sanctions. In addition to paying a record fine, the bank is expected to plead guilty to conspiring to violate the International Emergency Economic Powers Act and agree to a temporary prohibition on its ability to conduct transactions in U.S. dollars.

[April 30]
A development could produce the first guilty plea to criminal charges from a major bank in more than two decade. A lack of criminal prosecutions of banks and their leaders fueled a public outcry over the perception that Wall Street giants are “too big to jail.” The decision is to seek guilty pleas in two of the most advanced investigations: one into Credit Suisse for offering tax shelters to Americans, and the other against France’s largest bank, BNP Paribas, over doing business with countries like Sudan that the United States has blacklisted. The approach applies to American banks, though those investigations are at an earlier stage.

Preet Bharara, the United States attorney in Manhattan, has opened his own criminal investigations into a fraud at Citigroup’s Mexican affiliate and other American banks. And in the recent speech, Mr. Bharara warned, “You can expect that before too long a significant financial institution will be charged with a felony or be made to plead guilty to a felony, where the conduct warrants it.”

BNP’s shares are down less than 4%–a steep fall, but hardly calamitous. And its CDS have hardly budged, actually trading roughly one basis point tighter, at 64 basis points, according to data provider Markit. So much for banks being too big to indict.

[April 3]

There was valid documentation for $185 million of work, Citigroup said, but Banamex had advanced Oceanografía a total of $585 million. Some of Oceanografía’s invoices, Citigroup said, “were falsified to represent that Pemex had approved them. A Banamex employee processed them.”

There was valid documentation for $185 million of work, Citigroup said, but Banamex had advanced Oceanografía a total of $585 million. Some of Oceanografía’s invoices, Citigroup said, “were falsified to represent that Pemex had approved them. A Banamex employee processed them.”

A criminal investigation, overseen by the F.B.I. and prosecutors from the United States attorney’s office in Manhattan has opened as to whether holes in Citigroup Inc’s internal controls contributed to the fraud in Mexico. The question for investigators is whether Citigroup — as other banks have been accused of doing in the context of money laundering — ignored warning signs.
At Citigroup’s Grupo Financiero Banamex, Oceanografía became one of Banco Nacional de Mexico (Banamex)’.s largest corporate clients.
Under a short-term lending arrangement, Banamex would advance money to Oceanografia SA de CV, whose existence hinged almost entirely on government contracts. Banamex issued the loans with the understanding that Oceanografía had received contracts from Petróleos Mexicanos (Pemex), the state-owned oil monopoly. Once the work was completed, Pemex would repay the loan to Banamex.
Oceanografía’s financial problems became apparent in January 2014, when it announced that it would not be able to pay interest on a debt of $335 million contracted in 2008. Mexican authorities suspended Oceanografía from obtaining additional government contracts for several months. Shortly after, Banamex discovered a fraud.
There was valid documentation for $185 million of work, Citigroup said, but Banamex had advanced Oceanografía a total of $585 million. Some of Oceanografía’s invoices, Citigroup said, “were falsified to represent that Pemex had approved them. A Banamex employee processed them.”
Banamex accounts for 13 percent of Citigroup’s revenue.
At first glance, Citigroup appeared to be the victim of the fraud involving the Mexican oil services company Oceanografía. After all, the bank lost millions of dollars.
But the F.B.I. and prosecutors are questioning whether Citigroup was equal parts victim and enabler.
For one, it is unclear whether the wrongdoing at Citigroup was actually limited to a single Banamex employee, as early reports indicated. The authorities are investigating whether the scheme involved co-conspirators at the bank’s offices in the United States.
Banamex, acquired in 2001, is the biggest unit in Citigroup’s Latin America operations, which account for about 20 percent of total revenue. Profit at the subsidiary almost quintupled in the past decade, burnishing its reputation as well-managed and shielding the Mexico City-based bank from corporate interference.
The fraud allegations and a disclosure this week that Banamex USA received subpoenas in the U.S. related to money laundering now tarnish the unit’s image. The probes also could put pressure on Citigroup co-President Manuel Medina-Mora, whose job includes oversight of Mexican operations, and Banamex Chief Executive Officer Javier Arrigunaga, 50.

[September 15 2011]

Kweku Adoboli, a 31-year old trader on UBS’ exchange-traded-fund desk in London, has been arrested by City of London police in connection with rogue trading that has cost the Swiss banking giant an estimated $2bn (£1.3bn). The landlord at Mr Adoboli’s former £1,000-a-week apartment in Shoreditch, east London, described him today as a “nice guy”. a trader on UBS’ exchange-traded-fund desk in London. His title is listed as “Director ETF and Delta1 Trading at UBS Investment Bank.”

Investment banks’ Delta One operations trade securities that attempt to track an asset closely. Details are not yet known about what Adoboli traded.

Delta One can be considered the last domain of prop trading in the banking sector, where via market-making activities, traders can still get away with taking ample risks.

This is one of the few divisions in the banking community which is still hiring.

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$2.3 billion

Former UBS Group AG trader Kweku Adoboli, who was convicted for causing a $2.3 billion loss at the bank, arrived November 15, 2018, in Ghana — the place of his birth — after losing a legal fight to stay in Britain.

 

[September 18 2019   stayed   ]

 Kweku Adoboli was released from prison in June

Kweku Adoboli

With the hours ticking down to his deportation, Adoboli’s lawyers submitted an application for a judicial review of his case a judge granted the appeal for judicial review and injunction against deportation. Kweku Adoboli was the banker convicted of the UK’s biggest fraud but there were appeals from 132 MPs and a petition signed by more than 73,000 people and he expects to be released on bail until the outcome of the judicial review, he was facing deportation because he had never applied for British citizenship despite having lived in the UK since he was 12.

[Octpber 12 2015   may be deported   ]

Kweku Adoboli, a former UBS Group AG trader who caused a $2.3 billion loss through unauthorized trading, will fight a U.K. immigration tribunal’s decision to deport him to Ghana.
Adoboli, who was sentenced to seven years in prison in Nov. 2012, will lodge an appeal against the ruling handed down last week, his lawyer, Paul Lennon of London-based Bark & Co. said by e-mail. Ghana-born Adoboli was released from prison in June.
Adoboli was convicted of two counts of fraud for causing the loss at UBS’s London unit. He argued at trial that managers at Zurich-based UBS pushed him to take too many risks and that rule-breaking at the bank was rampant. While he admitted causing the loss, he said it wasn’t done dishonestly.
Though Adoboli has lived in England for 23 years, he doesn’t hold British citizenship.

[December 09 2012 UBS trader Kweku Adoboli’s boss claims racial discrimination]
Ronald Greenidge, the former UBS AG (UBSN) managing director fired for gross misconduct in his supervision of convicted trader Kweku Adoboli has sued the bank claiming it treated him more harshly than others because he’s black.
Greenidge, who was UBS’s head of European cash trading, alleges race discrimination and unfair dismissal. “There are stark discrepancies” between UBS’s treatment of Greenidge and other people connected to Kweku Adoboli, according to the complaint. Greenidge “is of black Caribbean origin. Mr. Adoboli is of black African origin. The claimant believes he has been treated less favorably than his” white counterparts.
Adoboli, originally from Ghana, was sentenced to seven years in prison on Nov. 20 for fraud tied to a $2.3 billion loss, the largest from unauthorized trading in U.K. history

Chief executive Sergio Ermotti has moved to shut down most of UBS’s fixed income business, cut 10,000 jobs, and instead squeeze more juice from its wealth operations. Elsewhere Dexia is in exclusive talks over the sale of its asset management unit to private equity firm GCS Capital, Credit Suisse has reportedly put its $17bn exchange traded fund arm on the market, while Deutsche tried and rather miserably failed to offload large chunks of its asset management operations.

[January 30]
Alleged rogue trader Kweku Adoboli has pleaded not guilty to two charges of false accounting and two of fraud while working for Swiss bank UBS.
[October 5 2011]UBS AG (UBSN), Switzerland’s biggest bank, said Francois Gouws and Yassine Bouhara resigned as co-heads of global equities following the $2.3 billion unauthorized trading loss detected last month.

[Sept. 24]Oswald Gruebel, chief executive officer of UBS AG (UBSN) since February 2009, resigned his post at Switzerland’s largest bank after a $2.3 billion loss from unauthorized trading.

He will be replaced on an interim basis by Sergio P. Ermotti, the bank’s CEO for Europe, the Middle East and Africa, UBS said

UBS’s Americas investment-banking division will spend part of the week golfing at California resort Pebble Beach with the company’s top clients

Now 2.3 bn: UBS trader Kweku Adoboli had no hedges in place , breaching the risk limits, then entered “fictitious” hedges. The UBS statement claimed Mr Adoboli had conducted legitimate derivative transactions, giving the bank heavy exposure to various stock market indexes. But he had then entered “fictitious” hedges against these positions into UBS’ risk management system, while in reality he had no hedge in place and was breaching the risk limits that the bank required him to work within.

UBS, for example, is offering managing directors base pay as high as 300,000 pounds ($470,000), double the amount of last May. [February 2010]
“How are you going to explain to your shareholders and employees that you’ve lost this amount from the acts of a single young employee in a trading room?”
City experts questioned how many other rogue trader cases never get exposed. Onno Steenbeck of Erasmus University in Rotterdam, a co-author of a paper on Leeson’s strategy, said: “Leeson believed in doubling up, like a naive gambler. He sometimes got lucky and got out of the misery but nobody knows how many Nick Leesons there are who got lucky and we never found out about.”
One current hedge fund trader, who declined to be named, added: “Of course there are bound to be people on the other side [of the UBS losses] who made miraculously large sums of money that weren’t authorised. They will be kept quiet. You won’t hear about it.”

His desk specialized in ETFs. But the alleged scheme centered not on the trading of those relatively plain-vanilla securities but on the hedging of risk, people familiar with the matter said. The false accounting charges, said to have taken place between October 2008 and December 2009, and January 2010 and September 2011, said UBS trader Kweku Adoboli had falsified “an exchange traded fund made or acquired for an accounting purpose” and falsified “an exchange traded fund transaction and other internal records.” UBS believes that the losses were accumulated in a large number of small trades over many months, not in one big deal.

As the City tough guy Paul Myners reportedly said, we never hear about the unauthorised rogue profits that arise from casino-style speculations – only about the rogue losses that are adding to market instability at a really unhelpful time.
Whether UBS is shown to have been aware of Adoboli’s trading is almost beside the point. If the bank was aware of it and did not stop it, then its failure to do so is unconscionable. If it was not aware of the trades, then its compliance and risk management departments’ failure to prevent them from happening in the first place is equally appalling.
In the post-Lehman, Dodd-Frank, Basel-III era, it is nearly unfathomable that a global bank of UBS’s heft, wealth and importance could allow this kind of loss to occur. Where were the adults?
>>>If it was possible there, where else?

money-laundering-e1341852512165

 

NSA may have accessed the SWIFT network through service bureaus. SWIFT service bureaus are companies that provide an access point to the SWIFT system for the network’s smaller clients and may send or receive messages regarding money transfers on their behalf.

[March 10 OPL 245 oil block grant to Shell by Nigeria]

 

2035

Former oil minister

http://royaldutchshellplc.com/2017/03/10/shell-confirms-several-countries-investigating-opl-245-scandal/

 

[March 6.  Guy Colegate and John Copleston, MI6, JP Morgan money laundering]

Two payments of $400m each were wired through JP Morgan in London as the spoils of a huge deal to develop a Nigerian oilfield involving Shell, its joint venture partner the Italian oil giant Eni, and the government in Abuja. In allegations made by an Italian prosecutor
Fabio de Pasquale, whose previous scalps include former Italian leader Silvio Berlusconi. Charges involve the money from the sale of Nigeria’s Oil Prospecting Licence 245 (OPL 245), a huge block off the coast of west Africa estimated to contain 9.3bn barrels of crude: enough to power the continent for seven years. Shell and Eni eventually prevailed, paying $1.3bn to the Nigerian government to secure the field in 2011.

However, within days the bulk of the money was transferred through JP Morgan in London to a convicted Nigerian money launderer – a man with whom both Shell and Eni had been negotiating. Guy Colegate and John Copleston, were identified by De Pasquale in legal documents as having “previously worked for MI6”.

Copleston was a “strategic investment adviser” at Shell who, as the UK’s former intelligence representative in Nigeria, had nurtured contacts at the highest levels of the country’s military and government. Colegate worked as a “business adviser”, compiling regular intelligence briefings on the main actors in the OPL 245 negotiations

 

[January 21 Deutsche Bank’s $462m Italian connection]

rossi

David Rossi

 

 

 

David Rossi, 51, a communications director at Monte dei Paschi di Siena, fell three stories from the bank’s Italian headquarters in March 2013.Reuters
Two days prior to his death, according to his wife, Rossi sent a cryptic email to the bank’s CEO, Fabrizio Viola. “I want guarantees of not being overwhelmed by this thing,” he wrote. “We would have to do right away, before tomorrow. Can you help me?”It remains a mystery what specifically Rossi thought could “overwhelm” him just before his death, but many have speculated that he was referring to Monte Paschi’s troubled financial position.

Rossi was a close confidant of former bank president Joseph Mussari, who was the driving force behind Monte Paschi’s 2008 $7.5 billion takeover of Banca Antonveneta. Many banking analysts agreed at the time that Monte Paschi paid too much in the acquisition that Deutsche Bank
http://nypost.com/article/why-are-so-many-bankers-committing-suicide/

https://www.bloomberg.com/news/features/2017-01-19/how-deutsche-bank-made-367-million-disappear

[November 10 2016 Deutsche Bank’s  capital ratio boosted after Hua Xia sale ]

 Hua Xia Bank Ltd

Wang Yaoting’s employer Hua Xia

The European Central Bank said it had agreed to include Deutsche Bank’s sale of its stake in lender Hua Xia in stress test results earlier this year after Chinese authorities gave assurances the deal would be approved. The inclusion of the stake in the stress test calculations boosted Deutsche Bank’s common equity tier-one capital ratio, a closely watched measure of financial strength, in the adverse scenario modelled as part of the exercise, from 7.4 per cent to 7.8 per cent.

[June 2015 Deputy head of Hua Xia Bank Ltd part-owned by Germany’s Deutsche Bank, arrested
Shares in Hua Xia Bank Ltd , a Beijing-based lender part-owned by Germany’s Deutsche Bank, fell more than 6 percent on May 4 a day after the Chinese bank said a deputy head and vice president was under investigation for suspected disciplinary violations.
The Beijing branch of of the CPC Beijing Municipal Commission for Discipline inspection, the governing Communist Party’s anti-corruption body, has opened a case against Wang Yaoting, Huaxia Bank received the “CPC Beijing Municipal Commission for Discipline Inspection filing a written decision”, to initiate disciplinary action for the bank’s vice president Mr. Wang Yaoting who was taken away for the investigation,

Wang Yaoting was born in July 1963 , Ph.D., senior economist. Former people’s Bank China education department deputy director of the Department of materials; Huaxia Bank Securities and director of the securities business department general manager, assistant president and general manager of the business department, Hangzhou branch of Huaxia Bank, Huaxia Bank, party secretary, assistant president, vice president, Party committee of Huaxia Bank (director of the general manager, and information technology department from project development office). Since 2007, as vice president of the Party committee, Huaxia bank. Wang Yaoting 2014 annual salary of 2120,000 yuan [342,018 US Dollars].
Deutsche Bank’s subscription is part of a private placement of shares to its three largest shareholders In April 2011, holders with an overall issuance value of up to RMB 20.8 billion (approx. EUR 2.3 billion). Subject to regulatory approvals, this investment will increase Deutsche Bank’s equity stake in Hua Xia Bank from 17.12% of issued capital to 19.99%, the Company issued 1,859,197,460 shares subject to restrictions on sales in a non-public manner to Shougang Corporation, Yingda International Holdings Corporation, Ltd. and Deutsche Bank Luxembourg S.A., who subscribed to 691,204,239 shares, 653,306,499 shares and 514,686,722 shares, respectively. The shares that the said investors subscribed to are locked for 60 months from 26 April 2011. The Company will apply to the Shanghai Stock Exchange (“SSE”) for the non-public offering of these shares on 26 April 2016

[February 2 Gao Jue: JPMorgan Chase China investigated under Foreign Corrupt Practices Act]

Gao Jue declined to comment through his current employer, Goldman Sachs Group Inc.

Gao Jue declined to comment through his current employer, Goldman Sachs Group Inc.

JPMorgan Chase & Co is under federal scrutiny over hiring the son of China’s Commerce Minister Gao Hucheng. Gao Jue started work in the summer of 2007. Mr Gao started working for Goldman in 2013 and is now in the bank s natural resources group in Hong Kong.
Gao Hucheng, who was promoted to minister in March 2013, offered to “go extra miles” for the investment bank if it spared his son during a major layoff.

The hiring is under scrutiny from U.S. authorities who are investigating the Asian hiring practices of JPMorgan and other banks.

Federal prosecutors view Gao Jue’s hiring as a potential violation of the Foreign Corrupt Practices Act, Gao Hucheng and his son are not accused of any wrongdoing. more JPMorgan China

[September 18 2014 Deutsche Bank, under scrutiny, wants money back from Zhang Hongli]

Zhang was said to have taken a steep pay cut to join ICBC. In a press release, Deutsche Bank said Zhang was “to follow [a] government call” to join ICBC.

Deutsche Bank is demanding that Zhang Hongli, now senior executive vice-president of the Industrial and Commercial Bank of China (ICBC), repay Deutsche Bank US$3.9 million. He held the dual posts as China chairman and head of global banking for Asia-Pacific ex-Japan at Deutsche Bank. Regulatory scrutiny of investment banks in the US has expanded into hiring practices in China. The US authorities are looking into whether large banks, including JPMorgan, hired the children of China’s rich and powerful to win lucrative IPO deals. The money went to an offshore company held by his relative.
Zhang caused the Hong Kong branch of Deutsche Bank to move US$3.9 million to the account of a company called Harperskille at the Shenzhen branch of China Merchants Bank. The money was a commission to Harperskille for helping Deutsche Bank secure a deal to become an underwriter for the public listing of China Shenhua Energy – the world’s second-largest initial public offering in 2005. China Shenhua was listed in Hong Kong in June that year, raising US$3.3 billion. Deutsche Bank, Merrill Lynch and China International Capital Corp got the business, defeating Citigroup and Goldman Sachs. Zhang insisted that the transfer was proper and that he had received verbal approval from senior Deutsche Bank management before the transfer was made.
It is a customary practice among investment banks, particularly those from Europe, to pay a middleman commission for bringing in lucrative deals.
Zhang’s appointment with ICBC – the world’s biggest bank by total assets – in April 2010 made him the first Chinese employee of a Western financial institution to be recruited as a senior manager at a state lender.
The 49-year old is also a member of the national committee of the Chinese People’s Political Consultative Conference.
During his 10-year stint at Deutsche Bank, Zhang was known as a prolific dealmaker. Apart from the Shenhua Energy IPO, he was also instrumental in helping ICBC’s record-breaking US$19 billion listing and that of China Life.

[August 15 Global Special Opportunities Group: JPMorgan China selling while under scrutiny]

PMorgan is hoping to fetch $1 billion for its Asia-based Global Special Opportunities Group. But interested buyers should consider the recent turmoil the bank has encountered in China.

JPMorgan has put its Asia-based Global Special Opportunities Group on the block, hoping to fetch a cool $1 billion from the sale. The bank has been shopping the group around to a number of private equity firms and credit-focused hedge funds that apparently want greater exposure to the fast-growing Asian — and by Asian we really mean Chinese — credit markets.

The impetus behind this sale may have to do with all the heat JPMorgan has taken recently over its controversial Chinese hiring practices. The firm is supposedly under investigation by U.S. authorities for allegedly hiring the sons and daughters of Chinese officials in an attempt to gain access to China’s massive state-controlled companies.

[August 13 Chinese trial balloon for an extradition treaty with U.S. after Xi Jinping’s corruption crackdown]

Hurun Research Institute polled wealthy Chinese emigrants about their reasons for leaving the mainland. The most frequent responses were education (21 percent), pollution (20 percent), food safety (19 percent), social welfare (15 percent), health care (11 percent), wealth security (8 percent), and childbirth/obtaining foreign citizenship for their children (4 percent). To be sure, if “fleeing President Xi Jinping’s corruption crackdown” had been offered as a multiple-choice answer, it’s unlikely that any “economic fugitives” would have answered forthrightly.

More than 150 economic fugitives from China, most of whom are corrupt officials or face allegations of corruption, remain at large in the United States, according to an official from the Ministry of Public Security .Many Chinese economic fugitives still at large in US “The US has become the top destination for Chinese fugitives fleeing the law,” said Liao Jinrong, director general of the International Cooperation Bureau under the Ministry of Public Security.
Figures from the ministry show that during the past decade, Chinese police have brought only two fugitives home to stand trial. One of those was the high-profile fugitive Yu Zhendong, former head of the Bank of China branch in Kaiping, Guangdong province.
Yu was found guilty of corruption and embezzlement of funds of up to $482 million, and was repatriated in 2005 after spending four years on the run.
“We face practical difficulties in getting fugitives who fled to the US back to face trial due to the lack of an extradition treaty and the complex and lengthy legal procedures, ” Liao said.
He said an extradition treaty is essential between the countries but little progress has been made with the US.
Moreover, experts said, US judicial authorities misunderstand the Chinese judicial system and procedures.
“They always think Chinese judicial organs violate suspects’ human rights,” said Wang Gang, a senior official from the America and Oceanic affairs division of the ministry’s International Cooperation Bureau.

[July 23 JPMorgan China names Brett Krause]
JPMorgan Chase said on Wednesday it named Brett Krause to head its locally incorporated bank in China, adding to other recent hires as it rebuilds its leadership team in the country.

Krause, a 20-year banking veteran, was hired as president of JPMorgan Chase Bank (China) Company Limited, the New York-based bank said in an e-mailed statement. He joined JPMorgan in January and previously held leading roles at Citigroup, including senior country officer in Vietnam.

JPMorgan earlier in July said it had hired former UBS AG banker David Li as the new head of overall China business, including investment banking. The bank’s chief executive for China investment banking, Fang Fang, left the firm in March, amid a probe of JPMorgan hiring practices in Asia.

Lilly Chang
Fulmark – JPM China connection

A consultancy firm operated by former premier, Wen Jiabao’s daughter, who often goes by the name Lily Chang, had been paid $1.8m by the US financial services giant JPMorgan, her consulting firm is Fullmark Consultants. The company was set up in the British Virgin Islands by Chang’s husband, Liu Chunhang, in 2004. He is a former Morgan Stanley employee, and he remained as sole director and shareholder until 2006, when he took a job in China’s banking regulation agency. Nominal ownership of the firm was transferred at that time to Zhang Yuhong, a Wen family friend. One purpose for such companies is to allow for the establishment of bank accounts in the company’s name, a legal measure that nonetheless makes tracing of assets a more complicated task.

Data Sheet FULLMARK CONSULTANTS LIMITED
OMIS Code: 19872 Outstanding Debtor Balance: $0.00
Name: FULLMARK CONSULTANTS LIMITED
Status: A ACTIVE
Tax Status: IBC BVI INTERNATIONAL BUSINESS COMPANY
Company Type: STD STANDARD INTERNATIONAL COMPANY
Administrator: OWONG OLIVE WONG
Registration Number: 611836
Incorporation Date: Wednesday, August 25, 2004
Authorised Capital: USD50,000.00
Referral Office: HK
Master Client: ESSLD Equity Secretarial Services Limited
Address: 8th Floor, Nexxus Building,
41 Connaught Road Central,
Hong Kong
Fax: 852 2956 1161
Telephone: 852 2956 1818
E-Mail: co.sec@victorchu.com
Master Client Contact: 2 Teresa Chu/ Ms. Shebby Lo
Directors: Docs Docs
Director Appointed Signed Resigned Signed Type
LIU Chun Hang 10/14/2004 3/16/2006 DIR
ZHANG Yuhong 3/16/2006 DIR
Secretaries:
Shareholders: Shareholder Cert # No Shares Share Acquired Disposal
LIU Chun Hang 1 0 ORD 14-Oct-04 16-Mar-06
ZHANG Yuhong 2 1 ORD 16-Mar-06
Annual Invoice Prof: Annual Fee Item Fee Amount Nominee Name
Renew Coy (TNet Fee) 300.00
Renew Coy (Govt Fee) 350.00
650.00
Previous Names:
Notes: Date Narration Type
08-May-09 Recived the following documents:- ENT

(1) the originally signed Resolutions in Writting of the Sole Director dated 17 August
2007 with the draft deed of waiver

The above-mentioned documents would be forwarded to BVI office shortly.

Olive Wong 8 May 2009
22-Apr-05 Witness: Georgea Hodge – Subscriber: Nicole Wheatley ENT

[June 8]

 Zhu Tong (Rose Zhu) Vice Chairman, China, Deutsche Bank AG


Zhu Tong (Rose Zhu)
Vice Chairman, China, Deutsche Bank AG

Deutsche Bank is being investigated by regulators looking to see whether it hired the children of Chinese government officials as a way to make connections and attract business, a source with knowledge of the probe .

JP Morgan have been probed by U.S. regulators regarding their hiring practices in China. Mar 31, 2014 :Deutsche Bank AG is weighing whether to refrain from working on China General Nuclear Power Group’s initial public offering amid a probe into hiring practices in Asia. Germany’s largest bank employs the daughter of Shenzhen-based China General Nuclear’s chairman, He Yu. He Yu’s daughter Celia isn’t currently working for Deutsche Bank. Celia He was hired in September 2011 by Beijing-based Zhong De Securities Co., which is part-owned by Deutsche Bank She was recruited into Deutsche Bank’s investment-banking department. She has also worked in global credit trading,

[May 30]

class

China Daily graphic 2014/05/30

Fang Fang belongs to the faction of Zeng Qinghong, a former Politburo Standing Committee member

Fang Fang belongs to the faction of Zeng Qinghong, a former Politburo Standing Committee member

Fang Fang is backed by Zeng Qinghong, the No.2 boss of Jiang Zemin’s faction. The news has been publicly reported in China, and is a sign that something has happened with Zeng Qinghong. Zeng had been in charge of Hong Kong and Macau affairs for a long period, and is currently involved in Bo Xilai and Zhou Yongkang’s cases.
Fang Fang is unable to leave Hong Kong and will face further investigation and legal charges. Investment bankers at JP Morgan are hiring lawyers for protection against possible future legal charges.

Fang Fang, who is 48 years old, has a complicated political background. He is a delegate to the CCP’s Political Consultative Conference and the chairman of Hua Jing Society, the Hong Kong branch for CCP princelings.

[May 21]

Fang Fang, former chief executive officer for JPMorgan Chase & Co. (JPM)’s China investment bank

Fang Fang, former chief executive officer for JPMorgan Chase & Co. (JPM)’s China investment bank

Fang Fang, former chief executive officer for JPMorgan Chase & Co. (JPM)’s China investment bank, was arrested by Hong Kong’s anti-graft agency. Fang resigned from the New York-based firm in March amid a U.S. investigation into whether the firm employed people in Asia so that their relatives in government would steer business to the bank, people with knowledge of the probes have said. The bank hasn’t been charged with any wrongdoing.

The banker, a 12-year veteran of JPMorgan, is out on bail after he was released by the Independent Commission Against Corruption without disclosing when Fang was taken in for questioning. He’s restricted from leaving Hong Kong, it said.

Ms. Therese Esperdy serves as the Co-Head of Asia-Pacific Investment Banking at JP Morgan Chase & Co.

Ms. Therese Esperdy, left, serves as the Co-Head of Asia-Pacific Investment Banking at JP Morgan Chase & Co.

Fang reports to Therese Esperdy, the bank’s co-head of banking for Asia-Pacific. Esperdy, who relocated to Hong Kong in 2011 from the firm’s New York headquarters to take charge of its advisory business was made co-head of corporate and investment banking in the Asia-Pacific region the following year.

Ms. Therese Esperdy serves as the Co-Head of Asia-Pacific Investment Banking at JP Morgan Chase & Co. Ms. Esperdy served as the Head of High-Grade Debt Capital Markets of JP Morgan Chase & Co. since November 22, 2004 and also served as its Global Head of Debt Capital Markets. She has been a Non-Executive Director at National Grid plc since March 18, 2014.

JP Morgan. perhaps, hired sons and daughters of senior Chinese officials in the hope of winning deals from major state-owned firms. JP Morgan’s hiring of the son of China Everbright Group’s chairman, Tang Shuangning, and a former railway official’s daughter. JP Morganhas ties, perhaps, with a consulting firm run by Wen Ruchun, also known as Lily Chang, the only daughter of former premier Wen Jiabao.

[May 18]
A Manhattan lawyer jumped to his death out of his luxury Central Park West apartment building May 16. Stephen R. Hertz, a partner at the Third Avenue practice, Debevoise and Plimton LLP, sent a suicide letter to his ex-wife yesterday evening before he plunged out his 22nd-floor window and landed in a tree. A building manager found Hertz, 54, at 9:21 pm mangled in the tree — which had to be cut down to retrieve his lifeless body. Hertz sent the suicide note to his ex-wife who forwarded the email to a psychiatrist who then dialed 911.

Bank of America, led by CEO Brian Moynihan,  called off its 2014 capital plan.

Bank of America, led by CEO Brian Moynihan, called off its 2014 capital plan.

[May 4]
Banks often have applied the fair value option to structured notes like Merrill Lynch’s, in which the payout to the debtholder is tied to changes in some other instrument. BofA properly factored the gains and losses of those notes into its earnings, but regulatory capital excludes unrealized gains and losses – and BofA stripped out more of those changes than it should have.
When making the calculation to get from its capital under accounting rules to its regulatory capital, BofA stripped out “unrealized” changes on those structured notes – i.e., the paper gains and losses on notes it still held. But the bank also stripped out “realized” losses on structured notes that had matured or been redeemed – and it wasn’t supposed to do so.
The error amounted to a difference of more than $4 billion in BofA’s regulatory capital, or about 0.3 percentage point at most in the bank’s future expected regulatory capital ratios, not that much in the scheme of things. But it is significant because it erodes the “buffer” the bank would have in excess of future required minimum capital levels

[March 12]
In 2010, 38,364 suicides were reported, making suicide the 10th leading cause of death for Americans.

http://www.bloombergview.com/articles/2014-03-13/why-are-so-many-traders-literally-killing-themselves

Leonard Morton

former Dewey & LeBoeuf executives Steven Davis, Stephen DiCarmine and Joel Sanders, along with former Dewey accounting employee Zachary Warren, filed into a downtown Manhattan courtroom Thursday to plead not guilty to multiple counts of fraud related to the firm's 2012 collapse.

former Dewey & LeBoeuf executives Steven Davis, Stephen DiCarmine and Joel Sanders, along with former Dewey accounting employee Zachary Warren, filed into a downtown Manhattan courtroom Thursday to plead not guilty to multiple counts of fraud related to the firm’s 2012 collapse.

Clad in suits and handcuffs, former Dewey & LeBoeuf executives Steven Davis, Stephen DiCarmine and Joel Sanders, along with former Dewey accounting employee Zachary Warren, filed into a downtown Manhattan courtroom Thursday to plead not guilty to multiple counts of fraud related to the firm’s 2012 collapse.

Leonard Morton,Manhattan attorney, jumped to his death March 7 from his downtown office building, sources said.
The 44-year-old lawyer leaped from a 12th-floor window at 225 Broadway, landing face down on scaffolding above the sidewalk, according to law enforcement sources.
Police were called to the scene at 7:23 a.m., when responders found the man in cardiac arrest.

[March 5]

Autumn Ratke

Autumn Ratke

It appears bitcoin’s recent turmoil has claimed its first life.

Autumn Radtke, a 28-year-old American CEO of bitcoin exchange firm First Meta, was found dead in her Singapore apartment on Feb. 28.
Local media are calling it a suicide, but Singapore officials are waiting for toxicology test results to determine a cause of death.
Radtke formerly worked with Apple and other Silicon Valley tech firms on developing digital payment systems.
Radtke’s death brings the number of questionable financial-sector deaths this year to eight.

[February 18]

HongKong rooftop jumper

The police said no suicide note was found.An investment banker at JP Morgan jumped to his death from the roof of the bank’s headquarters in Central yesterday.An initial police investigation showed he had recently told a colleague he was under heavy work-related stress, according to a police source involved in the investigation.

Witnesses said the man went to the roof of the 30-storey Chater House in the heart of Hong Kong’s central business district and, despite attempts to talk him down, jumped to his death.

[February 13]
On Feb. 10, the fourth banker in just over a month died of mysteriously causes. Ryan Henry Crane, an Executive Director in J.P. Morgan’s Global Program Trading desk, was found dead at the young age of 37.
Ryan Henry Crane was formerly employed by JPMorgan – a bank which was featured prominently in the news as recently as two weeks ago when another of its London-based employees committed suicide by jumping from the top floor of its Canary Wharf building. Third: Crane was an Executive Director in JPM’s Global Program Trading desk, founded in 1999 by an ex-DE Shaw‘er, a function of the firm which is instrumental to preserving JPM’s impeccable and (so far in 2013) flawless trading record of zero trading losses. – Zerohedge

While details of Crane’s death have not been released, the fact that he was a high level banker within the sphere of banks already involved in other mysterious deaths of three other financiers adds fuel to the fire that a hit list and banker purge may be currently underway.

[August 21 2013]

The punishing hours interns endure at investment banks were highlighted after the death of a young Bank of America Merrill Lynch employee who collapsed at home following three consecutive working days of 6am finishes.

Moritz Erhardt had been coming towards the end of a seven-week pre-graduate internship in London when his body was discovered by flatmates. The circumstances of the 21-year-old’s death are unknown but Scotland Yard is not treating it as suspicious. Mr Moritz was from Freiburg, south west Germany.

Around 300 interns working at various banks stay at the Claredale House student accommodation complex in Bethnal Green for between seven and 10 weeks over the summer.

One intern, who worked at one of the American “bulge-bracket” firms, memorably described the experience of working all night only to start the new day an hour later: “Every intern’s worst nightmare is what’s called ‘the magic roundabout which is when you get a taxi to drive you home at 7am and then it waits for you while you shower and change and then takes you back to the office.”The interns at Claredale House usually were foreigners. They are the star pupils from French, German, Australian, Chinese and Indian universities who arrive in London every summer to put their names into the hat for the City’s most prestigious banking jobs. The “hardcore” internships are the ones on the mergers and acquisitions desks, and last between eight and 10 weeks.

The banks every intern wants to work for — Barclays Capital, JP Morgan, Goldman Sachs, Credit Suisse, HSBC and, of course, Bank of America Merrill Lynch — pay their young charges well. Pro rata salaries of £40,000 or £50,000 mean that they can earn £10,000 for a summer’s work. Goldman Sachs is said to pay even more than that. The work is intense but the rewards are great if you can stand the pace. One former intern says there were 5,500 applicants for the two dozen internship places at his investment house when he did his summer there a few years ago.
A 25-year-old Masters student, one of the non-intern residents at Claredale House, said last night that Erhardt was “working crazy hours” and says most of the residents “work every Saturday and every Sunday”. Can she imagine any of them working 72 hours on the trot? “Yeah, definitely.”

A recent banking intern describes the work that eats up the small hours as “a lot of checking of documents, a lot of Excel, a lot of PowerPoint”. The interns spend a big chunk of their time preparing “pitchbooks” for client presentations, making the case for purchasing an educational group in Australia or a health training group in China.

“We would model the sector, the company, what they should pay for it, who their big guns are, what the challenges are, some ideas about integration and “synergies” — the most popular word in M+A [mergers and acquisitions].”

“When you’re an intern, you get given all the s*** work,” is the blunter summary of an intern arriving back at Claredale last night.

The City “bloodbaths” that have seen hundreds of thousands of workers laid off since the financial crisis hit have had a knock-on effect for the firm’s twenty-something summer helpers. There is anecdotal evidence that interns are doing more of the “client critical” work than they were expected to do a decade ago.

“I’m sure there are horror stories from the Eighties and Nineties all over the internet,” says a junior banker at a big City firm, “but the environment in the last three years has probably added to the idea that one has to keep working into the night, driven on by the fact that each intern is peering over his computer to see which other interns are left.”

The aspirant bankers who stay at Claredale pay between £156 and £168 per week for their small single-study bedrooms in shared flats. There are 246 such rooms in 59 flats over four storeys in the red-brick complex.

[September 25 2012]
Mr Adoboli then expected the market to rise again, which it did, But Mr Adoboli failed to close his position when he had the opportunity. Then the market dropped again, causing him to incur further losses, which he again hid.

Mr Adoboli’s defence, led by Charles Sherrard, claimed management had given mixed signals to traders, and that risk limits were not only high but regarded as flexible. According to Mr Sherrard, a culture of taking greater risks in the hope of generating higher profits had developed after the arrival of Yassine Bouhara, then one of the co-heads of global equities at UBS. “Throughout 2009 and 2011 this method of trading was endemic within the bank,” Mr Sherrard said.
[September 18]Despite seeing £233,000 pass through his NatWest Bank account in the 12 months prior to his arrest Mr Adoboli’s account was overdrawn by £3,594 when he was arrested on September 15 last year, the court was told. Across his four banks accounts and two credit cards the 32-year-old trader owed £4,181. His primary current account showed payments to eight pay-day loan companies including Wageday Advance, Wonga.com, Payday UK and Pounds to Pocket.
[September 14]Adoboli, from Whitechapel, East London, denies four counts of fraud and false accounting between October 2008 and September 2011.
During 2009-2010 when the “off book” trades occurred, Adoboli’s salary rose : beginning at £33,000 with a bonus of £7,500, by 2008 Adoboli was earning a combined sum of £65,000. Just two years later this was £360,000 – a basic salary of £110,000 and a bonus of £250,000 based partly on the bank’s wider performance but also on how much profit an employee brings in.
Adoboli racked up the giant losses undetected through three means. First, he often exceeded the official daily trading limit per employee of $100m. He also failed to hedge trades by making balancing trades to mitigate potential losses, an insurance method that also caps potential profits. By doing so Adoboli hoped to maximise profits and thus his bonus. Finally, he falsified data so as not to record his trades properly, often inventing false clients and trades for hedges.

[Sep 10]A jury was selected at today’s session. Arguments, which had been scheduled to start today at a London criminal court, were pushed back until the end of the week. Sept. 14

After spending nine months in Wandsworth prison in southwest London after his arrest on Sept. 15, 2011, Adoboli has been free on bail for three months.
He worked for the Zurich-based investment bank’s Delta One desk, which handles trades for clients — or risks the bank’s own money — typically by speculating on a basket of securities. The loss, which came from trading in Standard & Poor’s 500, DAX and EuroStoxx index futures, didn’t affect any client positions, according to UBS.

[September 16, 2011]Kweku Adoboli may have been caught out after the Swiss Central Bank unexpectedly devalued the franc last week, producing mammoth losses on his currency trades. Adoboli may have mis-hedged his exposure to the Swiss franc and attempted to hide it from his team when the market moved against him by overcompensating with a hedge in the opposite direction. Any short position on Swiss franc volatility would have suffered after volatilities rose again earlier this week. UBS claims the third largest share in global foreign exchange trading, and is the biggest trader in the euro/franc pairing.
Currency traders around the world either a) counted up the huge amounts of money they made from betting the currency would lose value; or b) counted the losses they’d racked up from betting on the Swiss Franc climbing further in value. Wilful blindness is more than mere negligence: it require knowing there’s a “high probability that a fact exists,” and “the defendant must take deliberate actions to avoid learning of that fact.”
One suspects that, in keeping with what happened at many banks, Kerviel, 33, was encouraged to engage in ever more reckless gambling so long as he made a profit. Then when the plan turned sour, management sought to cover their own backs by claiming his trades were ‘unauthorized’ and blaming the whole thing on him. [the Jerome Kerviel affair ]