Deutsche Bank failed to recognise $12 bn losses: Report
Global banking major Deutsche Bank did not recognise up to $12 billion of paper losses during the financial crisis, that helped it to stave off a government bailout, says a media report.
Anshu Jain, an Indian-origin, is currently Deutsche Bank's co-chairman. The other co-chairman is Jurgen Fitschen.
British daily 'Financial Times' has reported that Deutsche Bank "failed" to recognise up to USD 12 billion of paper losses during the financial crisis, helping the bank avoid a government bailout.
The report cited former bank employees' allegations in complaints to US regulators.
"The three complaints, made to regulators including the US Securities and Exchange Commission, claim that Deutsche misvalued a giant position in derivatives structures known as leveraged super senior trades, according to people familiar with the complaints," the daily said.
According to the report, all three allege that if Deutsche had accounted properly for its positions -- worth USD 130 billion on a notional level - its capital would have fallen to dangerous levels during the financial crisis and it might have required a government bailout to survive.
"Instead, they allege, the bank's traders -- with the knowledge of senior executives -- avoided recording 'mark-to-market', or paper losses during the unprecedented turmoil in credit markets in 2007-2009," the report noted.
Two of the former employees have alleged that Deutsche mismarked the value of insurance provided in 2009 by Warren Buffett's Berkshire Hathaway on some of the positions, it said.
Quoting a statement from Deutsche Bank, the report said that the allegations were more than two and a half years
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