Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

Deutsche hid $12bn loss claim three ex-employees

by Dylan Lobo on Dec 06, 2012 at 07:51

Deutsche hid $12bn loss claim three ex-employees

Three former Deutsche staff have claimed the bank hid $12 billion-worth of losses during the height of the credit crunch helping it avoid a government bailout, according to the Financial Times.

The paper said the trio have complained to US regulators about the cover up, which relates to the misvaluation of a significant position in derivatives structures known as leveraged super senior trades. They said the German bank's traders, with the knowledge of senior staff, did not record mark-to-market losses between 2007 and 2009.   

They added that if these instruments had been valued correctly, the bank's capital position would have fallen to dangerous levels, which could have forced the government to bail it out.

In a statement to the Financial Times, Deutsche highlighted the allegations were more than two-and-a-half years old and they were publicly reported in June 2011. It also said the allegations had been the subject of a 'careful and thorough investigation' and were 'wholly unfounded'.  

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment

With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:


On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet