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'.