Deutsche Bank, BofA, JPM Drawn into Danske Probe - Article Review

This article review discusses the ongoing investigation of Deutsche Bank, BofA, and JPMorgan by U.S. criminal investigators regarding transactions processed for a small bank branch in Estonia, which is suspected of large money-laundering activities. The article highlights key points such as Danske Bank's handling of $230 billion in suspicious funds, Estonian regulators' suspicion of the branch's activities, and the investigation by the Securities and Exchange Commission and Treasury Department. The reflection section analyzes the stress on sales goals and the correspondent banks' control of funds on behalf of foreign countries and currencies.

Running head- Article Review.
ARTICLE REVIEW

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Article Review
Table of Contents
Article Summary..............................................................................................................................2
Key points........................................................................................................................................2
Reflection.........................................................................................................................................3
Reference list...................................................................................................................................4

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Article Review
Article- Deutsche Bank, BofA, JPM Are Drawn Into Danske Probe
Source- Bloomberg
Authors- Christian Berthelsen, Tom Schoenberg, and Jonathan Browning
Date of the article- November 16, 2018
Link to Article- https://www.bloomberg.com/news/articles/2018-11-16/deutsche-bank-bofa-jpm-are-
said-to-be-drawn-into-danske-probe?srnd=premium
Article Summary
Deutsche Bank AG and Bank of America Corp were recently witnessing a major issue when
inquired by U.S. criminal investigators. The criminal bureau intends to investigate ongoing
activities and examining transactions process. The concern is regarding a transaction handled by
them for a small bank branch in Estonia (Barry et al. 2016). The root concern is to be monitored
as the branch in Estonia remains a center of large money-laundering. Questions have been asked
to JPMorgan Chase & Co.'s by Justice Department investigators. The focus, however, remains
with corresponding branches of banks for the Tallinn, Estonia, Danske Bank A/S as they have
undergone multiple international investigations. According to stated report, The Danish lender
witnessed the transfer of quarter trillion dollars' in cash to the global financial system (Blundell,
Atkinson & Roulet, 2018). The money transferred was stored and controlled under illicit
activities underwent in Russia. The huge amount was converted into foreign cash Into US
Dollars. It was withdrawn behalf of few clients from 2007 until 2015 that created major
suspicion.
Key points
1. Danske Bank has been found to have handling $230 billion augmented as suspicious
funds
2. In June 2013, under internal investigation, it was reported by JP Morgan executive that
Danske Bank intended to terminate services in regards to Estonia branch. It was resulted
due to large % of nonresident clients (acting as money laundering).

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3. Estonian regulators seemed to have suspicion on branch’s activities. After evaluation, it
can be concluded that Danske Bank branch has been accepting customers with money-
laundering characteristics.
4. As per reports, Securities and Exchange Commission and Treasury Department has been
investigating over Danske Bank transactions conducted over global departments
5. While JPMorgan’s was tied up in providing services from 2011 to 2013, the majority of
the Danske Bank customers seemed to have been associated with European money-
laundering services using opened accounts. It came under suspicion, as they were not tied
to their accounts and didn’t identify banks by name.
Reflection
As per the article, it can be concluded that currently the bank is stressed about sales goals. It has
been reviewed that focus groups remain 407 big-bank employees. I have understood that the
three banks that are associated are under targets of the investigation. Deutsche, BofA, and
JPMorgan acting as corresponding banks of Danske's Tallinn and branch of Estonia have been
facing major issues regarding annual sales and growth (Wruuck, Schildbach, AG, & Hoffmann,
2015). The investigation is under scrutiny whether big banks were able to provide sufficient
amount to transactions of Estonia. I have analyzed that correspondent banks have been
controlling funds in behalf of foreign countries and currencies. The amount stored is also used to
pay amounts to clients, causing the area of suspicion.
Further, spokespersons from Deutsche Bank, JPMorgan and BofA seemed to have declined to
give any remark on what Bloomberg questions. Bank of America, Deutsche Bank, and JPMorgan
are under serious probe by U.S. officials (Glasserman & Loudis, 2015). It concerns the
transactions under the supervision of Danske Banks in association with Estonian branch. As per
reports, I have gathered that matter of money-laundering investigations will help in
understanding the actions of the Bank aligned with people familiar with the similar matter.

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Reference list
Barry, J. M., Broughman, B. J., Chaffee, E. C., Henkel, C., Hockett, R. C., Malloy, M. P., ... &
Verstein, A. (2016). Amicus Curiae Brief in Gelboim v. Bank of America (Libor
Manipulation Litigation) on Behalf of Financial Markets Law Professors in Support of
Plaintiffs-Appellants.
Glasserman, P., & Loudis, B. (2015). A Comparison of the US and International Global
Systemically Important Banks. Office of Financial Research Brief Series, 15-07.
Wruuck, P., Schildbach, J., AG, D. B., & Hoffmann, R. (2015). Promoting investment and
growth: The role of development banks in Europe. EU monitor.
Blundell-Wignall, A., Atkinson, P., & Roulet, C. (2018). Business Models of Banks and Global
Contagion. In Globalisation and Finance at the Crossroads (pp. 115-136). Palgrave
Macmillan, Cham.