Traders at Deutsche Bank’s US unit suffered losses 12 times larger than its risk projections estimate could occur in one day.
News of the trading day, which happened earlier this year, was detailed on a May filing from the bank, Bloomberg reported.
“There’s questions about what this was…. But all we know is there was this outsized day that was two, three, four times bigger than anything we’ve ever seen,” reporter Sonali Basak, told Bloomberg TV, adding “It’s very unusual.”
On 19 June, the day before news of the trading losses emerged, Deutsche bank let go of five emerging market traders.
The German headquartered bank has had a challenging year with the Fed naming the US unit “troubled” in May. DB has downsized parts of their business and let go of hundreds of employees, with some top traders leaving voluntarily.
A spokesman for Deutsche Bank declined to immediately comment.
Leave a Reply
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
