One of the largest banks in Germany mistakenly transferred a security deposit of $ 35 billion to the Eurex clearing house of the exchange operator Deutsche Boerse. The agency Bloomberg reports this information with reference to an informed source.
This amount exceeds the market capitalization of the German bank, which is estimated at about $ 30 billion. Unfortunately, the bank declined to comment on the sum that had to be transferred.
“The error was discovered within a few minutes and then corrected,” the representative of Deutsche Bank responded to the request from journalists.
The representatives of Deutsche Bank mentioned that the sum had been transferred as collateral to the account of Eurex. The transfer happened during a major international exchange focused on European derivatives.
Charlie Olivier, a representative of DB assured that the bank had taken all possible measures to prevent such problems in the future.
The largest in terms of the number of employees and the amount of assets the financial conglomerate of Germany did not suffer any financial losses, but such a failure undermines the reliability of risk assessment and management procedures in Deutsche Bank. Alas, this is not the first situation with inaccurate transfer of money. Three years ago there was an identical case: then the junior currency trader incorrectly indicated the amount of the transaction and, as a result, the bank transferred $ 6 billion to the American hedge fund.
According to Dieter Hein, analyst of the American company Fairesearch, the fault with the transfer of funds indicates that the bank is not able to promptly correct its omissions in data mining systems.
Former Bank Executive Director John Cryan, who resigned at the beginning of April this year, often spoke about the success of the financial conglomerate in matters of internal data control. A specially designed “bear trap” system created after a similar case with the transfer of funds in 2014 was cited as a good experience.
Paradoxically, but it is Deutsche Bank that is in the “trap”. Investors do not believe in the prospects of the bank, the natural consequence is the loss of almost two-thirds of the value (when measured in shares) over the past three years.
It’s not the first time when Deutsche Bank, the largest participant both of the foreign exchange market and the investment market, has to justify itself to a huge number of customers for the mistakes, thereby undermining its reputation in the international financial community.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade