CityNews picks up on two Deutsche Bank stories currently doing the rounds.
The Wall Street Journal reports that there has been trouble in Malaysia. Five senior Deutsche Bank Malaysia-based executives are said to have resigned after a dispute over trades worth $102.6m. During a five-week period in July, Deutsche Bank traders are said to have entered into a series of bond trades with a counterparty who thought that a 'gentleman's repo' agreement was in place to repurchase the debt in future at a predetermined price.
Apparently Deutsche says that the buyback options weren't authorized and that the trades were, according to a local spokesman, 'in breach of all internal regulations and compliance to normal procedures'. The dispute has yet to be resolved, however, as the bank is apparently refusing to repurchase all the debt.
And more potentially bad news for the German banking giant. Reuters quotes an unnamed 'person familiar with the situation', who apparently claims that Deutsche Bank is being targetted by New York state Attorney General Eliot Spitzer as his office continues to probe the mutual funds industry. New York state is said to have issued a subpoena seeking certain documentation about Deutsche's trading practices.
Have something to tell us about this article?