2/21/2019, 12:17 AM (Source: TeleTrader)
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Deutsche Bank loses $1.6 billion on bond investment - report

According to previously undisclosed internal documents, Deutsche Bank AG accumulated a loss of $1.6 billion on a mixed up municipal bond investment it bought in 2007, after failing to reduce the value of the bonds and related derivatives to their market value, the Wall Street Journal reported on Wednesday.

Assuring investors that its internal financial situation was in check, the bank acquired billions of dollars in capital markets. It failed to report accurate results internally, besides, and continued to increase the loss only gradually. According to people familiar with the matter, the bank never restated its previous financial results. Bank executives as well as members to the supervisory board’s audit committee and external advisers were all aware of the decision not to disclose genuine results, but shared them, however, with regulators, according to a source.

Breaking the News / GG