Staff: Deutsche books hid $12B losses

(Financial Times) -- Deutsche Bank failed to recognise up to $12bn of paper losses during the financial crisis, helping the bank avoid a government bail-out, three former bank employees have alleged in complaints to US regulators.
The three complaints, made to regulators including the US Securities and Exchange Commission, claim that Deutsche misvalued a giant position in derivatives structures known as leveraged super senior trades, according to people familiar with the complaints.
All three 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.
Instead, they allege, the bank's traders -- with the knowledge of senior executives -- avoided recording "mark-to-market", or paper, losses during the unprecedented turmoil in credit markets in 2007-2009.

edition.cnn.com...
Slowly but surely, we are routing out the culprits and liars. The bankers are CORRUPT. This is just another example of the rampant "cheating" (sometimes called 'creative accounting') that has caused the imminent collapse of the financial web as we know it.

Probably the internet will be shut down before ALL of the corrupt thieves at the top are exposed - but as long as each of them, in turn, is exposed for this stuff, we MIGHT make progress to correcting it.

Those shysters deserve to be publicly ridiculed and exiled. 500 years ago, they'd have been hanged or beheaded. Unless, of course, they were involved closely with TPTB (the king or emperor or high-priest or whatever). It's a matter of public trust, and the banks have been blown WIDE open as UNTRUSTWORTHY cheaters.

Ugh.
They deserve NO benefit of the doubt anymore. Why are they still operating? *coughs.* Conspiracies.

Most trading that goes on is super-fast automated; computers do the trading at nano-second speed. It's totally out of control, fake, and skewed. The house ALWAYS WINS.

And the employees who reported their findings (correctly) to the SEC were FIRED. One got a settlement of $900K; now I wish I'd filed a suit against the corporation I worked for that was abusing employees and other nefarious goings-on.

Two of the former Deutsche employees have alleged they were pushed out of the bank as a result of reporting their concerns internally.
One of them, Eric Ben-Artzi, a risk manager at Deutsche, was fired three days after submitting a complaint to the SEC. In a separate complaint to the Department of Labor, he claims his dismissal was retaliation for his allegations.
Matthew Simpson, a senior trader at Deutsche, also left the company after submitting his own complaint to the SEC. Mr Simpson declined to comment. Deutsche Bank paid Mr Simpson $900,000 to settle his anti-retaliation lawsuit. Reuters reported in June 2011 that Mr Simpson had raised concerns about improper valuation of the derivatives portfolio.
The third complainant, who worked in risk management and has requested anonymity, raised his concerns to the SEC and voluntarily left the bank.

The little guys and good guys never win, folks. It's disgusting.

reply to post by wildtimes


star 4 u
nice thread op. i'll give it a proper read when i have a bit more time
i understand the germans are still using deutchmarks in their economy to the tune of 7bn as well as the euro.
somehow i think if any other nation state did that, merkel would wet her panties and fit like a hissy lol!
f.