Deutsche Bank Spying Scandal
Deutsche Bank AG is a German global banking and financial services company that was caught spying not only on its board members, but also on the personal life of some of its investors. This scandal hit the bank as it is was not only Germany’s largest bank, but also the largest foreign dealer in the world with a presence in Europe, USA, Asia-Pacific, and the emerging markets. In 2006, the bank succumbed to paranoia when it hired an external detective agency to snoop on contacts between board members and the Munich-based media magnate, Leo Kirch and his associates, whom they have litigation with. Due to the scandal, the German government vowed to have a new privacy-protection law for workers.
This was one of the largest banks in the Philippines until it was closed down on the basis of liquidity by the Philippine Deposit Insurance Corp. (PDIC). However, the liquidation grounds were not the issue here as some of Urban Bank’s officers were later criminally charged with economic sabotage due to their falsified supervision and examination sector (SES) reports to the Monetary Board.
Jerome Kerviel and the Société Générale Banking Scandal
Jerome Kerviel is a rogue trader who tripped up the world’s financial market when his unauthorized trading in the securities markets using the bank’s computers resulted in €4.9 billion losses to the Société Générale funds. The worst part of the issue came when the bank’s executive tried to mask the fraud by “unwinding” his trades. This resulted in trading panic all over the Atlantic causing a decline in European markets.
Barclays, one of the world’s largest banks, was hammered by a scandal involving the Libor manipulation, where banks lend each other money at high rates. The company owned up to the allegation that it manipulated the London Interbank Offered Rate, which was tied to trillions of dollars worth of financial contracts and derivatives. The issue led to the resignation of the company’s CEO, Bob Diamond, and the company was asked to pay $450 million. Other banks like UBS were also under investigation for the Libor-rate rigging.