Fed is Said to Criticize Deutsche Bank's Oversight and Reporting Efforts

The New York Times

July 22, 2014

Jordan A. Thomas confirms New York Fed's findings are consistent with whistleblower complaints filed in 2011

Jordan Thomas, a lawyer who represents a former Deutsche Bank risk analyst who filed a whistleblower claim against the bank, said that regulator, the Federal Reserve Bank of New York, sent a letter in December to officials at the German bank notifying them of the findings of its review.

Mr. Thomas said he had seen a copy of the letter and it directed Deutsche to fix problems in its financial reporting procedures — problems the letter said had existed for several years.

Mr. Thomas said the New York Fed's findings were consistent with complaints raised by his client, Eric Ben-Artzi, in a whistleblower action filed with the Securities and Exchange Commission in 2011.

"These revelations are consistent with Dr. Ben-Artzi's allegations in light of the culture he described at Deutsche Bank," said Mr. Thomas, who heads the whistleblower practice at Labaton Sucharow. "The findings of the Fed are not surprising."

Mr. Thomas said he could not discuss the SEC investigation but had every reason to believe it was continuing.