The long and murky relationship between Jeffrey Epstein and Deutsche Bank has caught the attention of New York regulators.
Months of investigation by the New York’s financial watchdog agency, the Department of Financial Services, may spur a punishment of the German lender for its decision to keep the famous sex criminal as a client years after his first conviction, according to a report.
Epstein maintained dozens of accounts at Deutsche Bank up until last summer and borrowed money from the bank after pleading guilty to paying underage girls for sex in 2009. The DFS probe is focused on why Deutsche allowed employees to acquire Epstein as a client after rival bank JPMorgan Chase dumped him as a client in 2013, according to the New York Times, which first reported the news.
An enforcement action could come as soon as this month, and would be focused on the bank’s failure to comply with state regulations and its own policies and procedures, sources told Reuters on Tuesday.
Deutsche Bank and the Department of Financial Services didn’t immediately respond to requests for comment.
“Our reputation is our most precious asset. We regret the decision to associate with Epstein,” Deutsche Bank spokesman Daniel Hunter told Reuters.
Deutsche Bank, which only cut ties with Epstein a few weeks before his suicide in a Manhattan jail cell last August, publicly launched its own investigation into its relationship with Epstein last year.