One part of Deutsche Bank turned down Donald Trump's request for a loan. But the private banking division, which catered to the rich and famous, arranged the loan anyway — and then, when Trump stopped making payments, arranged another one.
Some of the world's largest and most powerful banks spent the past decade mired in scandal, but none descended as far into ignominy as Germany's Deutsche Bank. Its rap sheet includes a staggering array of ethical and legal lapses, including money laundering, tax fraud and sanctions violations — not to mention mysterious ties to President Trump that federal investigators are even now looking into.
It started by recruiting Edson Mitchell, an American executive from Merrill, who believed Deutsche Bank's"stubborn Germanness was the main impediment to unleashing its full animal spirits." Mitchell set about building a global markets operation, not at the bank's Frankfurt headquarters but in London, where he could function more independently. He hired a staff of"bloodthirsty piranhas" from Wall Street who knew how to push boundaries, as Enrich's tale tells.
Mitchell died early in a plane crash, but the machinery he built kept chugging along. Enrich tells the story of its rise and fall in the careful style of a good newspaper reporter but allows the complicated material to unfold like a good novel. With the piranhas in charge, Deutsche Bank eventually became the biggest bank in the world, with 90,000 employees and some $2 trillion in assets — almost the size of the German economy, Enrich notes. Despite that, it was a clumsily managed place. The bank's antiquated computer system made it difficult for senior management to monitor London's activities, even if they'd wanted to — and it's not clear they did.
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