Paul J. Davies, Columnist

Deutsche Bank Puts Epstein Spotlight on JPMorgan

German lender settled with Epstein’s victims for $75 million.

May 18, 2023 at 5:00 PM UTC

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

The exterior of what was once Jeffrey Epstein’s Manhattan house
Photographer: Kevin Hagen/Getty Images North America

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Deutsche Bank AG’s $75 million settlement of a lawsuit from victims of sex trafficker Jeffrey Epstein ends a grim chapter for the German bank, but intensifies the spotlight on JPMorgan Chase & Co. The US lender will very likely also pay up, but only once some extra wrinkles in its cases have been ironed out.

The reasons to settle are obvious. Embarrassing revelations and unsavory headlines would accompany any trial, while senior executives could also be forced to testify. That has “public-relations disaster” written all over it. But any suggestion that a bank accepts direct liability for the actions of its clients could set an extremely costly precedent.