The $6bn trade was said to have been processed by a junior member of the bank’s FX sales team while his boss was on holiday.
The Financial Times reports that Deutsche Bank paid $6bn to a hedge fund client by mistake in a 'fat finger' trade on its foreign exchange desk this summer that raises fresh questions about its operational controls and risk management.
The bank recovered the money from the US hedge fund the next day. But the incident in its London-based forex team was an embarrassing blow to the bank, which is already under intense scrutiny from regulators.
The $6bn trade was processed by a junior member of the bank’s FX sales team in June while his boss was on holiday, said two people familiar with the matter. Instead of processing a net value, the person processed a gross figure. That meant the trade had 'too many zeroes', said one of the people.
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