Deutsche Bank has halted bonus payments to a group of employees while examining whether they improperly traded with the firm.
'We are reviewing a transaction that may have involved unacceptable conflicts of interest', the bank said in an e-mailed statement, without identifying past or present staff involved. 'We will take disciplinary measures where appropriate and review further our controls to minimize the chance of a re-occurrence'.
Bloomberg News reports that the internal review focuses on Deutsche Bank’s efforts in 2009 to profit from differences in prices of credit indexes and the underlying debts that compose them, according to a person with knowledge of the situation. Six employees participated in their personal accounts alongside an external hedge fund, the person said, asking not to be identified because the review is confidential. The bank began scrutinizing the trading last year after it was flagged amid a broad push to reduce leverage, the person said.
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