UBS beefs up commodity trade finance, ex-Deutsche Bank employees questioned

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UBS, which has made deep cuts in its investment banking arm, is expanding in commodity trade finance by hiring 10 bankers in Geneva since the start of the year, a director said on Thursday.

Reuters reports that Switzerland accounts for around $1.59 trillion of commodity trade finance volume, according to the Swiss Bankers Association.

Asked why the bank was willing to allocate more resources to commodities lending, Albert Steiger, director of commodity trade finance at UBS, told Reuters: 'It's less capital intensive and the loans are short term. We have a management commitment to increase our activity'.

In the meantime, the news agency also reports that Bundesbank officials met with former Deutsche Bank employees in the United States earlier this month as they investigated allegations the lender failed to correctly value a derivatives portfolio, sources familiar with the probe said on Thursday.

The Bundesbank was reacting to accusations made by a Deutsche Bank former employee alleging that the lender had incorrectly valued credit derivatives from 2007 through 2010, allowing it to hide billions of euros in losses.

Deutsche Bank said the allegations are unfounded and declined to comment on the investigation.

UBS boosts Swiss presence in commodity trade finance

Bundesbank questions ex-Deutsche Bank employees in U.S.- sources

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