Bankers Trust controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile2 entries
1998
Abandoned-property and escheatment fraud
Bankers Trust pleaded guilty after senior personnel improperly treated dormant customer funds and uncashed dividend and interest checks as income rather than transferring them to state authorities as required. The conviction restricted the institution's eligibility to do business with many municipalities and companies.
1994
Derivative-sales litigation involving Gibson Greetings and Procter & Gamble
Two major corporate clients alleged that Bankers Trust had failed to adequately explain the risks and valuations of complex derivative transactions. The disputes, including the release of broker recordings, damaged the bank's reputation and contributed to broader scrutiny of the over-the-counter derivatives market.