Ex-staff say Deutsche Bank concealed $12bn losses
Bank denies claims.
Deutsche Bank has been the subject of complaints to regulators over the alleged failure to recognise up to $12bn of losses.
The Financial Times reported today that the inaccurate accounting had enabled the bank to avoid a goverment bailout, writing that the three complaints:
allege that if Deutsche had accounted properly for its positions – worth $130bn on a notional level – its capital would have fallen to dangerous levels during the financial crisis and it might have required a government bail-out to survive.
In an email to Reuters, Renee Calabro, a spokeswoman at Deutsche Bank, rejected the claims:
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.