Commerzbank said poised to settle sanctions investigations

Commerzbank AG is poised to put a half-decade of legal woes behind it as it prepares to settle parallel U.S. investigations into sanctions violations and allegations about the bank’s role in one of Japan’s biggest accounting scandals, according to two people familiar with the matter.

The bank is prepared to enter this week into an agreement with the Justice Department to avoid at least three criminal prosecutions, one of the people said. It will pay as much as $1.45 billion in settlements with nearly a half-dozen government agencies, which also include the Manhattan District Attorney, the Federal Reserve and the U.S. Treasury Department.

New York’s Department of Financial Services will require the bank, Germany’s second-largest lender, to install a monitor and will seek senior executives’ resignations, said the two people familiar with the investigation, who asked not to be named because the discussions aren’t public.

Source: Bloomberg

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