Deutsche Bank denies hiding billions in losses

6th December 2012, Comments 0 comments

Deutsche Bank rejected Thursday a newspaper report which alleged that Germany's largest lender hid billions of dollars (euros) in losses on its holdings during the financial crisis a few years ago.

Deutsche Bank said in a statement that the report in the Financial Times was "wholly unfounded."

According to the FT, three former Deutsche Bank employees told the US regulators, the SEC, that the bank had used improper accounting to misrepresent as much as $12 billion (8.4 billion euros) in losses on credit derivatives during the financial crisis between 2007 and 2009.

Deutsche Bank -- which liked to present itself as one of the few German banks to weather the crisis -- hid the losses so as to avoid a government bailout, the newspaper alleged.

The bank promptly denied the report, saying that the allegations were "more than two and a half years old" and had been widely reported in June 2011.

"The allegations were the subject of a careful and thorough investigation and they are wholly unfounded," it said in an emailed statement.

"We have cooperated with the SEC on this matter and will continue to do so," the bank added.

Deutsche Bank said it had properly valued and accounted for its trading on the credit derivatives in question and the positions had since been unwound in and orderly fashion.

Deutsche Bank booked a net loss of 3.9 billion euros in 2008, but ran up a profit of nearly 5.0 billion euros in 2009.

© 2012 AFP

0 Comments To This Article