SEC fines Deutsche Bank $55m over misstated accounts
The US Securities and Exchange Commission (SEC) has fined Deutsche Bank $55m for material misstatements about a derivatives portfolio, for which the bank inflated the value at the height of the financial crisis.
Deutsche Bank AG
€14.90
13:20 19/04/24
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23:58 18/04/24
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13:20 19/04/24
The SEC said Deutsche failed to account for a “material risk for potential losses estimated to be in the billions of dollars”.
An outside expert hired by the SEC said the positions were misstated by at least $1.5bn, while Deutsche Bank estimated the gap at $1.5bn-$3.3bn, according to the SEC.
The SEC said the bank’s financial statements did not reflect the significant risk “in these large, complex illiquid positions".
Deutsche has agreed to pay the $55m to resolve the allegations, without admitting or denying the charges.