Financial Daily Dose 5.23.2019 | Top Story: Deutsche Bank admits to using faulty AML software

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Deutsche Bank on Wednesday confirmed the basics of a recent German newspaper report that revealed that the bank “had used faulty software to screen customer transactions for suspicious activity” while claiming that “no suspicious transactions had slipped through as a result.” The news comes as the banking giant struggles with ongoing allegations of its “lax money-laundering controls” – NYTimes and WSJ

In surely only coincidentally timed news, DB CEO Christian Sewing told investors that “far-reaching changes” are coming for the bank, including “significant cuts” to its investment banking unit – Bloomberg

The Federal Reserve released its May meeting minutes yesterday, and they show a central bank content to keep rates right where they are—“even if the economy continued to strengthen” and despite ongoing inflation concerns – NYTimes and WSJ and Bloomberg

PM May’s latest Brexit plan, which we told you about yesterday, was not met with great love from her party, her Cabinet, or many in her country. Which doesn’t leave a lot of love left – NYTimes and Bloomberg

Natura Cosmeticos, Brazil’s largest cosmetics company, has reached a deal to buy Avon Products Inc. in an all-stock deal valued at nearly $2 billion – WSJ and Bloomberg

The SEC has accused Roberg C. Morgan, one of the country’s largest landlords with more than 140 properties across 14 states, of “running a ‘Ponzi scheme-like’ effort using cash from small investors and of misleading banks to obtain bigger loans by using fake loan documents.” The DOJ also filed criminal conspiracy and wire fraud charges against Morgan – WSJ and Law360

Meanwhile, the suddenly busy DOJ antitrust department has reportedly issued a civil investigative demand to CoreLogic, which “provides real estate data to government agencies, lenders and other housing-market participants” as part of a larger probe into “potentially anti-competitive practices in the real estate brokerage business” – Bloomberg

Google’s recent move away from Huawei appears to be prompting wireless carriers in the UK and Japan to follow suit, in part due to the ubiquity of Google’s Android OS – NYTimes and WSJ

GE CEO Larry Culp’s turnaround to do list is a lengthy one, but we learned at the Electrical Products Group conference yesterday that he’s committed to taking the big items one at a time. More specifically, he’ll get to GE’s “problematic financial-services business,” but only after stabilizing its power-generation division – WSJ

Filed to the “Nope, absolutely nothing could go wrong with this” category, Amazon is working on a “voice-activated wearable device that can recognize human emotions.” Nope, nothing at all.  Right Dave? Dave?Bloomberg

MDR

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