Since neither the regulator nor the bank would reveal the people responsible for the fault, my colleagues and I decided to fill in some of the blanks left by the consent order. (Some bankers and executives have confirmed their role; none would comment on the matter.)
“RELATIONSHIP MANAGER-1”, who brought Mr. Epstein to Deutsche Bank, is Paul Morris, who previously helped manage the Epstein account at JPMorgan. Despite Mr. Epstein’s conviction in 2008 for seeking prostitution from minor and widespread media coverage of his involvement with underage girls, Mr. Morris in 2013 introduced Mr. Epstein to his bosses at Deutsche Bank as “a potential client who could generate millions of dollars in revenue as well as leads for other lucrative clients in the bank, “according to the consent order.
In a subsequent email to senior bank officials, Morris noted that the relationship with Epstein could generate annual revenues of up to $ 4 million.
Mr. Morris needed the approval of a client who carried such a reputation risk. He sent Charles Packard, the head of the bank’s US wealth management division, and described in the consent order “EXECUTIVE-1”, a memo detailing Mr. Epstein’s controversial past. In a subsequent email, Mr. Packard stated that he had brought the case before the Divisional General Counsel and the head of his anti-money laundering operation and that neither did not feel that Mr. Epstein needed further examination. “We can move forward as long as nothing more is identified,” Mr. Packard wrote in a May 2013 email to Mr. Morris.
(Deutsche Bank has told regulatory authorities that it has found no written record of any executive approval, Mr. Packard said it had consulted.)
At the time, Deutsche Bank was aggressively expanding its wealth management business in the United States under the leadership of its new co-managing director, Anshu Jain. The bank has built a reputation for wooing wealthy clients whom other banks shunned – including a defaulting real estate developer named Donald J. Trump.
Once relationship with Epstein started, Deutsche Bank executives ignored repeated red flags, including strangely large cash withdrawals and 120 bank transfers totaling $ 2.65 million to women with names Eastern European family members and those who had been publicly identified as co-conspirators of Mr. Epstein, according to the consent order.