A Kremlin-Connected Russian Bank Deposited $500 Million into Deutsche Bank Subsidiary While It Was Simultaneously Lending to Trump, Prompting Allegations of Money Laundering
Around the same time that an American subsidiary of Deutsche Bank lent Donald Trump his now most highly scrutinized series of loans, a Russian government-controlled bank deposited – at least – half a billion dollars into that same bank.
According to confidential bank records, Trump received loans from the bank in excess of $360 million at the same time that Gazprombank sent $511 million in cash to DBTCA.
In 2013, DBTCA had deep connections to the Russian government as well. The documents obtained by Forensic News show that the bank owed Russian entities around $3 billion.
A Deutsche Bank Trust Company (DBTC) report shows that in October 2013, DBTCA owed Gazprombank, which is controlled by the Russian government, approximately $511 million.
It was DBTCA’s debt to a foreign government-controlled entity. Another loan brought DBTCA’s tally owed Gazprombank to more than $515 million.
Deutsche Bank said in a statement that DBTCA’s arrangement with Gazprombank was that the Russian state bank moved significant amounts of money into DBTCA as “cash management.”
A spokesman from Deutsche Bank said, “At no point has DBTCA ever received loans or a capital injection from Gazprombank or any other Russian bank.”
This arrangement meant that Russian government rubles could be converted to U.S. dollars and deposited in their DBTCA account. Gazprombank would then instruct the distribution of cash to certain entities that used the U.S. dollar.
The bank’s spokesman said, “A standard part of commercial banking needed by clients that operate internationally is the management of their cash in different currencies.
Such cash balances show as liabilities on balance sheet, as that attributes the ownership of that cash to the client. Such liabilities are cash deposits, not loans.”
Deutsche Bank has refused to name the entities.
Given Trump’s preexisting financial and counterintelligence concerns, this new revelation of Russian involvement certainly adds insult to injury. Where he has already been scrutinized, surely this will multiply concerns among his critics, as it should.
The recently released documents also show that DBTCA had more than $13 billion to other entities, but about 26% of that total was owed to Russian entities. This large amount raises concerts about why an American bank was so connected to Russian cash.
This is not the first time Deutsche Bank has come under fire. Previously they faced scrutiny over a $1 billion loan to VTB Bank, another bank that was also majority owned by the Russian government.
That enormous loan was first given in 2007 and the Wall Street Journal reported later that Deutsche Bank scrambled to get rid of that balance immediately after Trump was elected.
Recently, a whistleblower named Val Broeksmit told Forensic News that he had divulged to the FBI that VTB had been the underwriter of the Trump loans, basically assuring that a pathway of money would funnel to Trump from DBTCA.
Documents that support Broeksmit’s claims show that it’s possible that $3 billion could have come from Russian banks into DBTCA and that the DBTCA turned around and handed $1 billion back to Russian bank VTB.
Broeksmit shared a highly detailed and private official Deutsche Bank document called a “breach report” with Forensic News, who then published a report. This type of report is usually originally generated because the banks assets are exceeded by its liabilities.
Broeksmit came across the report in documents that had belonged to his father, an executive at DBTCA and Deutsche Bank which came to him after his father committed suicide in 2014.
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