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27 June 2017 - Deutsche Bank faces possible US$60m loss on derivatives bet
Deutsche Bank
Source - https://www.bloomberg.com/news/articles/2017-06-27/deutsche-bank-said-to-face-possible-60-million-derivative-loss-j4fx1yar
Where - United States of America
Cost - 60,000,000 USD
Business line - Trading and Sales

Deutsche Bank could lose as much as US$60m on a derivatives bet, Bloomberg reports.

The trade in question is understood to have involved derivatives products tied to US inflation and is now under scrutiny for a possible risk limit breach. Anonymous sources quoted by Bloomberg claim the case has been escalated to the bank’s supervisory board.

Deutsche’s CEO, John Cryan, recently vowed to improve risk management at the firm after it was criticised by global regulators for having inadequate controls in place. Concerns were also raised last year about the risks involved with Deutsche’s US$46trn derivatives book.

“If it is true that a single trade could cause such a loss at Deutsche Bank, then this would be a clear setback to Cryan’s efforts to improve controls,” said analyst Michael Seufert. “He has vowed to end such control failures.”

The troubled lender has been hit with scandal after scandal in recent years and is currently reviewing whether it misstated the value of inflation derivatives, in a separate issue uncovered in 2016.

An official for Deutsche Bank in New York declined to comment.