Deutsche Bank: 'Systemic' Failures in Russian Trades

The video discusses the Russian mirror trades issue, where $10 billion flowed out of Russia without proper anti-money laundering checks. It highlights the systemic failures at Deutsche Bank, which missed red flags over a year. John Cryan, the new CEO, aims to clean up these failures and improve profitability. The video also explores the importance of compliance and culture in banks, noting similar issues at other major banks like JP Morgan.

What was the main issue with the Russian mirror trades?

• They were not flagged by the bank's controls.

• They involved a small amount of money.

• They were approved by the Department of Justice.

• They were properly vetted through anti-money laundering protocols.

What was John Cryan's primary focus as the new CEO of Deutsche Bank?

• Cleaning up systems and controls.

• Increasing the bank's market share.

• Expanding into new markets.

• Reducing the number of employees.

What challenge does Deutsche Bank face in balancing risk and profitability?

• Risk management is not important for the bank.

• Profitability is not a concern for the bank.

• Risky markets are always less profitable.

• Risky markets often offer higher profitability.

What is a key factor in addressing compliance issues in banks?

• Building a strong compliance culture.

• Increasing the number of risky trades.

• Reducing the number of compliance officers.

• Ignoring compliance instructions.

How do banks typically address legal issues?

• By focusing solely on profitability.

• By ignoring regulatory requirements.

• By building up the back office for compliance.

• By reducing the back office staff.