Deutsche Bank to Pay $130 Million to Settle Federal Criminal and Civil Investigations

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Deutsche Bank agreed Friday to pay $130 million largely to settle allegations that it violated laws against bribery by using middlemen and hiding its payments to them as part of a global effort to win business.

The German bank admitted the wrongdoing in its agreement with prosecutors and reached a deal with the U.S. government over a commodity-trading scheme as it settles two longstanding cases before the change of administrations in Washington.

The bribery settlement exposed a wide-ranging effort by the bank to use consultants or middlemen to help it get deals in Saudi Arabia, Abu Dhabi, China and Italy. Regulators frown on the use of these consultants because they are often seen as a backdoor way to funnel cash to government or corporate officials.

The bank reached a so-called deferred-prosecution agreement with federal prosecutors in Brooklyn, meaning it won’t face criminal charges if it abides by certain requirements for three years.

The bank agreed to pay about $87 million to settle the criminal allegations. Deutsche Bank will pay $43 million to resolve a parallel investigation by the U.S. Securities and Exchange Commission, the SEC announced Friday.

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