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Democrats ask Fed to probe Trump's Deutsche Bank ties

Democrats ask Fed to probe Trump's Deutsche Bank ties
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A group of seven Senate Democrats asked the Federal Reserve on Thursday to investigate whether Deutsche Bank managers declined to report to the federal government suspicious transactions involving accounts held by President TrumpDonald TrumpDemocrats, activists blast reported Trump DOJ effort to get journalists' phone records Arizona secretary of state gets security detail over death threats surrounding election audit Trump admin got phone records of WaPo reporters covering Russia probe: report MORE and his son-in-law and senior adviser Jared KushnerJared Corey KushnerNew Kushner group aims to promote relations between Arab states, Israel Republicans request documents on Kerry's security clearance process Iran moves closer to a diplomatic breakthrough that may upset Israel MORE.

The New York Times reported last month that senior Deutsche Bank wealth management officials repeatedly ignored requests from internal anti-money laundering watchdogs to file suspicious activity reports on transactions conducted by Trump, his businesses and Kushner.

In a Thursday letter to Federal Reserve Chairman Jerome Powell and Federal Reserve Bank of New York President John Williams, the seven Democratic senators asked for an investigation into the allegations raised in the Times article.

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“We urge you to undertake a thorough evaluation of the Bank’s compliance with Bank Secrecy Act and Anti- Money Laundering regulations with respect to the Trump and Kushner-related activities identified by Deutsche Bank compliance staff as suspicious,” the senators wrote.

The letter was spearheaded by Sen. Chris Van HollenChristopher (Chris) Van HollenIs America slipping to autocracy? Trade representative says policy must protect key industries Senate Democrats push Biden over raising refugee cap MORE (D-Md.) and co-signed by Democratic Sens. Sherrod BrownSherrod Campbell BrownSherrod Brown calls Rand Paul 'kind of a lunatic' for not wearing mask On The Money: How demand is outstripping supply and hampering recovery | Montana pulls back jobless benefits | Yellen says higher rates may be necessary Senate Democrats announce B clean bus plan MORE (Ohio), Jack ReedJack ReedOvernight Defense: Former Navy secretary reportedly spent .4M on travel | Ex-Pentagon chief Miller to testify on Jan. 6 Capitol attack | Austin to deliver West Point commencement speech Overnight Defense: Gillibrand makes new push for military sexual assault reform | US troops begin leaving Afghanistan | Biden budget delay pushes back annual defense policy bill Biden budget delay pushes back annual defense policy bill MORE (R.I.), Bob MenendezRobert (Bob) MenendezJuan Williams: A breakthrough on immigration? Biden rebuffs Democrats, keeps refugee admissions at 15,000 Bottom line MORE (N.J.), Elizabeth WarrenElizabeth WarrenDebate over ICBMs: Will 'defund our defenses' be next? Manchin on collision course with Warren, Sanders Hillicon Valley: Broadband companies funded fake net neutrality comments, investigation finds | Twitter rolls out tip feature | Google to adopt 'hybrid work week' MORE (Mass.), Catherine Cortez MastoCatherine Marie Cortez MastoOn The Money: Incomes, consumer spending soared in March | Harris, senators work behind scenes on jobs package | Biden cancels some border wall construction Hillicon Valley: DOJ to review cyber challenges | Gaetz, House Republicans want to end funding for postal service surveillance | TikTok gets new CEO Americans for Prosperity launches campaign targeting six Democrats to oppose ending filibuster MORE (Nev.) and Tina SmithTina Flint SmithSenate Democrats push Biden over raising refugee cap Sharpton eulogizes Daunte Wright: 'Tags of racism' have expired Hawley votes against anti-Asian hate crime bill MORE (Minn.), all members of the Senate Banking Committee.

The senators asked Powell and Williams to answer 11 questions by June 24 regarding whether they have begun investigating claims from the Times article, what they’ve found and how they expect banks to monitor accounts for potential financial crimes.

“Only by conducting a thorough review of the full range of this activity can we better understand what happened in these cases; what practices, procedures, or personnel may need to be changed at the bank; and what regulators should do to ensure the Federal Reserve’s ability effectively to monitor compliance with Anti- Money Laundering laws,” they wrote.

Democratic lawmakers have homed in on Deutsche Bank and the international legal scrutiny it has drawn, along with its close connections to Trump, his family and business empire. The German lender has paid billions in fines and legal settlements, including nearly $700 million in fines related to Russian money laundering scheme.

Three Democratic-led House committees are investigating Deutsche Bank’s involvement in potential money laundering and financial crimes, along with Trump’s long-standing relationship with the bank. The panels have subpoenaed Deutsche Bank for its financial records pertaining to Trump, which the president has sought to block in court.

Over the past two decades, Deutsche Bank has lent roughly $2 billion to Trump, including unconventional loans for real estate projects through its private wealth management wing.

The president owes roughly $300 million to Deutsche Bank, the only major bank who would lend to Trump after a series of bankruptcies and defaults ruined his standing among most financial firms.

Democratic lawmakers argue that Deutsche Bank’s implication in Russian money laundering and ties to Trump raise questions about a potential nexus with the Russian government’s attempts to sway the 2016 election in the president’s favor.

"This overdependence on Deutsche Bank and the heightened potential for conflicts of interest it poses is made more troubling because the President has refused to make any effort to address conflicts of interest or disclose his extensive global financial ties, as other Presidents and candidates have done in the past," the senators wrote.