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.
Your Business: Cover Star Club

Profile: The godfather of fund-of-hedge-funds on the sector's future

Profile: The godfather of fund-of-hedge-funds on the sector's future

When Dixon Boardman started 26 years ago ‘there were 600 hedge funds and only 100 had $100 million – it was not even a cottage industry,’

Wealth Manager on Twitter