Loading ...Deutsche Bank Slides After Mortgage Probe Unveiled; Admission It Rigged Stocks
A month after admitting to rigging precious metals markets, Deutsche Bank has been hit with a double-whammy of more alleged fraudulent behavior today and the stock is sliding. First, Reuters reports that the bank took a charge of 450 million euros for “equity trading fraud,” and then Bloomberg reports that The SEC is looking into Deutsche’s post-crisis mortgage positions.
First, as Reuters reports,
Germany’s Deutsche Bank said it took a charge of around 450 million euros (348 million pounds) last year in relation to share trading fraud, but declined to give any details on Monday.
The bank increased its provisions for “external fraud” to 475 million euros in 2015 from 20 million euros in 2014, according to its annual report.
“The increase in the event type ‘External Fraud’ is caused by a provision for equity trading fraud,” the bank said in the report, which was published in March.
And then, as Bloomberg reports,
SEC investigating whether Deutsche Bank inflated the value of securities in its mortgage-bond trading business, masked losses around 2013, according to people with knowledge of the matter.
Investigators looking at positions overseen by Troy Dixon, who at the time ran the bank’s trading for U.S. government- backed mortgage bonds known as agency pass-throughs.
SEC asking whether DB delayed recording losses on those securities over an extended period of time