Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Deutsche hid $12bn loss claim three ex-employees

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 or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter