'We have rigorously reviewed the reasons why this error occurred and taken steps to prevent its recurrence'.
Bloomberg News reports that a routine payment went awry at Deutsche Bank last month when the bank inadvertently sent 28 billion euros ($35 billion) to an exchange as part of its daily dealings in derivatives, according to a person familiar with the matter.
The errant transfer occurred about a week before Easter as Deutsche Bank was conducting a daily collateral adjustment, the person said. The sum, which far exceeded the amount it was due to post, landed in an account at Deutsche Boerse AG’s Eurex clearinghouse.
The error, which took place in the final weeks of former Chief Executive Officer John Cryan’s tenure, was quickly spotted and no financial harm suffered. But the episode raises fresh questions about the bank’s risk and control processes, which Cryan had boasted of improving before his ouster.
“This was an operational error in the movement of collateral between Deutsche Bank’s principal accounts and Deutsche Bank’s Eurex account,” Charlie Olivier, a spokesman for Deutsche Bank, wrote in an emailed statement. “The error was identified within a matter of minutes, and then rectified. We have rigorously reviewed the reasons why this error occurred and taken steps to prevent its recurrence.”
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