Ex-Deutsche Bank employees say bank hid $12 bln in losses - FT
LONDON (Reuters) - Three former Deutsche Bank (DBKGn.DE) employees have filed complaints with the U.S. securities regulators claiming the bank failed to recognize up to $12 billion of unrealized losses during the financial crisis, the Financial Times reported on Tuesday.
Complaints to regulators including the U.S. Securities and Exchange Commission (SEC) said that Deutsche misvalued a large position in derivatives structures known as leveraged super senior trades, the newspaper reported, citing people familiar with the submissions.
The report said this improper accounting allowed the bank to misrepresent its capital position and avoid a government bailout.
"The allegations of financial misstatements, which are more than two and one-half years old and were publicly reported in June 2011, have been the subject of a careful and thorough investigation, and they are wholly unfounded," Renee Calabro, a spokeswoman at Deutsche Bank, told Reuters in an email.
She dismissed the report on Tuesday evening, saying that all "valuations and financial reporting were proper". (Reporting By Dasha Afanasieva)
- Tweet this
- Share this
- Digg this
More than 70 percent of Indians are satisfied with the leadership of Prime Minister Narendra Modi since he took office nearly three months ago, an opinion poll showed, seeing in him the best hope to put the economy back on track. Full Article