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Deutsche Bank did not fire truth teller in strip club spending saga


Deutsche Bank made headlines last week for firing a group of bankers who spent a night at a strip club and lied about it – but spared the only employee who ‘confessed’ learned The Post.

As The Post reported, the German financial giant launched an investigation after bankers tried to spend a tab on a single night’s debauchery that topped $1,000, sources say.

The bankers had headed to Sapphire New York – an Upper East Side jiggle joint that also operates a steakhouse whose offerings include a $25 “body sushi” experience, where customers can eat raw fish on the body of an exotic dancer, a knowledgeable source said.

While three bankers who were fired insisted the big tab was rung at a steakhouse, insiders say a junior banker who followed confessed that the staff members had in fact gone to a strip club.

The underling “actually expressed contrition” for the unfortunate exit and was spared being fired by his bosses, a knowledgeable person told the Post.

Deutsche’s decision to keep the only truth-teller underscores that the bank was more concerned with deception than anything else, people familiar with the bank said. Indeed, at least one of the dismissed bankers did not even attend the party, according to a source.

“It was really about the cover-up and the deception,” the source said. “The cover-up was worse than the crime.”

Deutsche Bank fired four financiers for spending a night at a strip club, then covered it up.
Getty Images/iStockphoto

In a statement to The Post, a spokesperson said: ‘Deutsche Bank is thoroughly investigating allegations of possible misconduct in a comprehensive and impartial manner. We do not tolerate violations of our Code of Conduct or Company policy and take appropriate corrective action based on the seriousness of the circumstances. The Bank declines to comment further on the circumstances of this particular case.

According to its website, Sapphire caters to businesses and even offers a relatively affordable “corporate package,” which includes free admission for five people, a VIP table on the ground floor, and a $500 credit for the food and drinks. The total cost, including taxes, is $683.04. (The cost of a lap dance could not be determined, but website visitors are offered a freebie simply for signing up to Sapphire’s mailing list.)

The Post could not reach Sapphire or Primal Cut, the steakhouse listed at the same address as the Upper East Side strip club, which describes the restaurant as “the ultimate high-end dining experience and the perfect match with Sapphire NY”.

The laid-off bankers not only lost their jobs, but also lost millions in deferred compensation, people told the Post.

Headquarters of Deutsche Bank in Frankfurt
Deutsche Bank fired several high-level employees for not telling the truth about submitting an expense report for a strip club restaurant, sources told The Post.
Bloomberg via Getty Images

At Deutsche Bank, bonuses for top performers – usually a mix of stock and cash – are mostly deferred or vest over several years, people with knowledge told The Post. The goal is to tie top employees to the long-term performance of the company by retaining some of their bonuses, the people add. When a worker is terminated for cause, they lose all deferred compensation they have accumulated.

For two of the laid-off bankers — head of equity capital markets Ben Darsney and the managing director who ran most of the bank’s SPAC business, Ravi Raghunathan — those bonuses were substantial.

Insiders speculate that Darsney and Raghunathan have lost as much as $6 million given that several years of postponement are combined, people with knowledge told The Post.

Stock photo of a strip club
The one employee who told the truth about the strip club’s expenses was not fired, a source familiar with the matter told The Post.
Getty Images

“It’s like a progressive tax table – the more you earn, the more you lag,” a person with knowledge of The Post told The Post. “For guys like Ravi and Ben, it’s likely that 100% of their bonuses for the last three to four years have been deferred.” And over the past few years, bankers have earned record bonuses from a slew of deals.

However, losing all deferred compensation may actually make it easier for them to find jobs elsewhere, a source told The Post. If a competitor wants to hire a banker from another company, the bank must offer a competitive salary and pay the banker’s deferred compensation.

Given Darsney and Raghunathan’s popularity with clients, the men’s relatives think they’ll land on their feet.

“The speculation is that they will all have ended up somewhere by July 4,” one person told the Post.

New York Post

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remon

Passionate troublemaker. Amateur gamer. Lifelong alcohol specialist. Social media nerd. Thinker
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