Deutsche Bank is facing difficulties in Las Vegas
11 July 2015
The Deutsche Bank is back with more negative headlines. Because of the Libor scandals 5 managers are now supposed to appear before a US court and the involvement in the match-fixing scandal is getting to the German Bank AG now also in an American casino investment. Here a union is questioning, if the financial institution is suitable for a stake in the casinos. The Libor scandal was the manipulation of the London interbank rate called Libor. The German’s largest bank had received a fine of $ 2.5 billion in April and was hoping to settle allegations of fraud from the British and US authorities. With a planned business, the 25% stake through a subsidiary of the Station Casinos, the union called on the casino-supervision in Nevada to examine the involvement of the German financial institution in depth. The director of the union, Maya Holmes, stated that they are very concerned to whether the German bank was likely to keep abreast a 25% share of the subsidiary on the casino.
The Deutsche Bank took over the stake on Station Casinos as part of a restructuring carried out in 2009 by a bankruptcy court. The letter from the Director of the union with 55,000 members was sent to Tony Alamo on June 17, chairman of the Nevada Gaming Commission as well as to AG Burnett, chairman of the Nevada Gaming Control Board. It also called for hearings, which should decide whether the bank and its managers are likely to hold the shares further. The Gaming Board is responsible for granting licenses to the owners of casinos and is being reviewed by large investors in the background. On Thursday Burnett replied via email that the Gaming Control Board will consider the matter and added that the casino supervision has not come to no conclusions in this matter as to whether the licensee had done anything inappropriate. This Friday the unions Culinary Workers Local 226 and Bartenders Local 165, both of which belong to the umbrella union UNITE HERE, had been placing pickets at the operated casino named Casino Palace Station by Station Casinos in Las Vegas.