Deutsche’s woes mounts as DoJ probes bank in connection with IMDB scandal

Deutsche Bank

After cutting over 18,000 jobs to stabilise its going concern, Germany’s Deutsche Bank is now caught between the crosshairs of the 1Malaysia Development Berhad (1MDB) scandal’s probe.

This is because the U.S. Department of Justice, DoJ said it is looking at how some former executives of Deutsche Bank who joined Goldman Sachs were implicated in the 1MDB scandal.

The 1MDB scandal unraveled in 2015, Malaysia’s then-Prime Minister Najib Razak was accused of channeling over RM 2.67 billion, nearly USD 700 million) from 1MDB, a government-run strategic development company, to his personal bank accounts.

Goldman Sachs’ executives have been implicated in the probe. The bank was ordered by the Malaysian government to refund $600 million after it was found guilty to have abetted the fraud.

As for Deutsche Bank, there are various worries its needs to get over. Earlier this week, the German lender executed its long-planned layoffs across various markets affecting its equities business. While the job cuts have been questioned not to be enough, a possible probe by the DoJ could hamper its focus.