DB mirror trades

:((

The 'mirror' trades that caught Deutsche in Russian web

When regulators* looked into the "mirror" trades at Deutsche Bank, they didn't like what they saw.

A client would ask Deutsche Bank in Moscow to buy Russian

blue-chip stocks using roubles, for example, then shortly after another would tell Deutsche Bank in London to sell the same amount of shares at the same price for dollars.

There was a steady flow of small trades, typically $2-3 million each, totalling about $10 billion of deals over about four years, according to regulators. The parties often lost money on the deals due to fees and commissions.

In fact, the two clients involved "were actually closely related", said the New York State Department of Financial Services, such as through common ownership.

The regulators established that the deals covertly moved money from Russia to elsewhere in the world in a manner that could have been used for money laundering.

* Deutsche Bank (DBKGn.DE) agreed to pay $630 million in fines to U.S. and UK regulators for failing to prevent around $10 billion in suspicious trades being laundered out of Russia, settling a second major legal case this month.

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