As many of you who have followed this blog for a time know, Deutsche Bank is a troubled bank that I have written about for the last four years.
Its culture has been one of fraud and corruption that I believe led to murder in three instances.
Into this fray entered CEO John Cryan in 2015. I don’t believe Cryan knew the full extent of what he was getting into. The bank’s culture was one of running operations that bordered on the criminal and crossed that line on many occasions.
Just prior to the Libor scandal breaking wide open, a Deutsche top-tier executive who was in charge of risk was found hanged in his London home.
In New York City a managing director, who worked with the Securities and Exchange Commission to keep the bank out of hot water, was found hanged in his house in Brooklyn.
I believe these executives were whistleblowers on Deutsche’s activities in cheating Libor to make higher profits. To that end they were sidelined.
Deutsche has paid more than $3.5 billion in fines and penalties to settle US, British and EU probes into Libor manipulation since Cryan has taken the helm.
It’s no surprise that Deutsche is the only global banking firm not to see a stock price rebound after the financial crises of 2008. The Street knows its recent pedigree and is staying far away from investing in the troubled bank.
Cryan should have known that when he was going in. I’m sure he is well aware of it now.