Deepak Moorjani, Deutsche Bank, & the NYT May 28, 2009Posted by larry in economics.
Tags: Deepak Moorjani, Deutsche Bank, economics, financial fraud, labor law, New York Times, risk culture, Zero hedge
On 10 May 2009, Zero Hedge published a story about an employee of Deutsche Bank Japan, Deepak Moorjani, who had been trying to get the bank to reform its risk practices and management. In a letter sent to the New York Times and published in their Dealbook section on 16 April 2009, Moorjani sets out his case against Deutsche Bank’s risk culture. Zero Hedge tired to link to the letter but found a 404 error instead – the Times had removed the piece, presumably on advice of legal counsel after being contacted by Deutsche Bank or its lawyers. Moorjani was involved in litigation with a unit of Deutsche Bank at the time and, presumably, still is. Fortunately, you can find the letter in its entirety here: http://www.scribd.com/doc/14757881/Another-View-Deutsche-Banks-Culture-of-Risk. This document is a damning indictment of Deutsche Bank’s practices.
The removal of this entry by the New York Times is not quite the same action as that taken by the Daily Telegraph in regard to their Patterson report. In the case of the Telegraph, no legal case was being brought by any of the parties involved, although the Telegraph might have had concerns that one might suddenly materialize. It is unfortunate that Zero Hedge did not obtain any legal opinion concerning whether the Times may have had to remove the Dealbook entry for legal reasons.
Moorjani is a rather courageous individual and Deutsche Bank have acted like bullies, employing legal means to attempt to silence him. Fortunately, new Japanese labor law* protects Moorjani from arbitrary dismissal, which is what such dismissal would have amounted to in his case, although DB would no doubt differ with me on this.
* For a summary of Japanese labor protection, see http://www.scribd.com/doc/13453568/DLA-Piper-Legal-Background (provided by Moorjani at Scribd).
Update: There have been reports that Deutsche Bank has been engaged in “naked short selling”, a dubious activity at best, which the SEC has only recently, and reluctantly, decided to address – http://www.deepcapture.com/deutsche-bank-sold-massive-amounts-of-phantom-stock/. DB have also been accused of fraud – http://www.dbankfraudinfocenter.com/information.php, and the list of bank fraud news sites is uncomfortably long.